Chimerix (CMRX – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Edward White from H.C. Wainwright downgraded the rating on the stock to a Hold and gave it a $8.55 price target.
Edward White has given his Hold rating due to a combination of factors surrounding the recent acquisition announcement of Chimerix by Jazz Pharmaceuticals. The acquisition agreement, which values Chimerix at $8.55 per share, represents a significant premium over its previous market price. This acquisition has prompted a downgrade from a Buy to a Neutral rating, aligning the price target with the acquisition offer.
Additionally, while Chimerix’s drug dordaviprone presents a promising commercial opportunity, particularly with its potential FDA approval and market launch, the acquisition overshadows these prospects in the short term. The drug’s development and market potential remain significant, but the acquisition effectively caps the stock’s upside potential at the agreed acquisition price. Therefore, the Hold rating reflects the limited room for stock price appreciation beyond the acquisition offer, despite the underlying business opportunities.
According to TipRanks, White is an analyst with an average return of -5.7% and a 34.87% success rate. White covers the Healthcare sector, focusing on stocks such as Valneva, 60 Degrees Pharmaceuticals, Inc., and Chimerix.
In another report released today, Wedbush also downgraded the stock to a Hold with a $8.55 price target.