Emergent Biosolutions (EBS – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on the stock and has a $15.00 price target.
Ram Selvaraju has given his Buy rating due to a combination of factors that indicate a positive outlook for Emergent Biosolutions. Despite a moderate miss in top-line revenue for 2024, the company is expected to achieve cash flow-positive status in 2025, with projected net income and improving gross margins. The company’s financial guidance for 2025 suggests a recovery, with anticipated top-line revenue and adjusted EBITDA showing significant improvement.
Emergent Biosolutions has also demonstrated success in securing substantial contract awards, such as the Medical Countermeasure Contract Modification Awards and a procurement contract for BioThrax with the U.S. Department of Defense. The expansion of the ACAM2000 indication to include monkeypox prevention and the resolution of legacy legal disputes further strengthen the company’s position. Additionally, the naloxone franchise, despite facing competition, continues to be a durable revenue stream, bolstered by the acquisition of North American rights to KLOXXADO. These factors collectively support the Buy rating and a 12-month price target of $15.