UPDATE: Aegis Capital Initiates Coverage on Sinovac Biotech with Hold Rating, $2.50 PT

In a report published Wednesday, Aegis Capital Corp. initiated coverage on Sinovac Biotech Ltd. SVA with a Hold rating and $2.50 price target. Aegis Capital noted, “We are initiating coverage of Sinovac Biotech Ltd. (NASDAQ/SVA) with a Hold rating and a 12-month price target of $2.50 per share. While we note that the firm is operating in a traditionally high-growth arena - vaccine production - and is primarily targeting China, which has been among the fastest-growing vaccine markets of late, the vaccines business is cyclical and the firm has recently suffered from a weak influenza season and decreased public market sales. We expect to remain neutral on the name until evidence of sustainable sales growth and a return to profitability can be conclusively demonstrated.” Sinovac Biotech Ltd. closed on Tuesday at $2.52.