UPDATE: Wedbush Cuts PT on Delcath Systems on Reduced 2016 Sales Forecast

Wedbush maintained Delcath Systems

with an Outperform rating and lowered the price target from $9.55 to $5.00. Wedbush analyst Gregory R. Wade commented, "We value DCTH off of a 5x multiple of 2016 sales (now $206 million vs. our previous $447 million), discounted back 3 years at 25% to YE:13 (plus 2016 cash). Our PT calculation now assumes 2016 shares/warrants of 123.8 million shares/warrants from 108.9 million. We expect a potentially positive FDA ODAC on May 2 and subsequent FDA approval in mid-June to lead to a sharp move up in DCTH's stock to our $5 price target. Steady reimbursement and commercial progress in the EU and Asia, and new clinical work will, we believe, lead to continued positive momentum in the stock following the FDA catalysts." Delcath Systems closed at $1.74 on Thursday.