In a report released today, Thomas Flaten from Lake Street downgraded Optinose (OPTN – Research Report) to a Hold, with a price target of $9.00.
Thomas Flaten has given his Hold rating due to a combination of factors surrounding the acquisition of Optinose by Paratek Pharmaceuticals. The acquisition involves an upfront cash payment of $9 per share, which aligns with the new price target set by Flaten, down from the previous $17. This adjustment reflects the immediate value Optinose shareholders will receive from the deal.
Additionally, the potential for contingent value rights (CVRs) adds complexity to the valuation, as they could provide up to an additional $5 per share if certain sales milestones are met. However, the base deal valuation is below the industry average multiple, which suggests a conservative outlook. The strategic move to sell or acquire assets was deemed necessary to avoid the risks associated with being a single-product company, further justifying the Hold rating as the market awaits the completion of the acquisition.