Asterias Biotherapeutics (AST) Receives a Buy from H.C. Wainwright

By Carrie Williams

H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Asterias Biotherapeutics (NYSE: AST) today and set a price target of $11. The company’s shares closed yesterday at $1.55, close to its 52-week low of $1.20.

Selvaraju wrote:

“Valuation methodology, risks and uncertainties. We use a sum-of-the-parts approach, which ascribes a $440M risk-adjusted net present value (rNPV) to the AST-OPC1 program in AST-VAC programs in NSCLC and prostate cancer. Our model involves a 70% probability of success and 16% discount rate for AST-OPC1 in SCI. The total projected firm value is $700M. This translates into a price per share of $11.00 given about 65M fully-diluted shares outstanding as of end-2Q 2019.”

According to TipRanks.com, Selvaraju is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -1.7% and a 36.4% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as IntelliPharmaCeutics International, Biospecifics Technologies Corp, and EyePoint Pharmaceuticals Inc.

Currently, the analyst consensus on Asterias Biotherapeutics is a Moderate Buy with an average price target of $8.50, which is a 448.4% upside from current levels. In a report issued on August 3, B.Riley FBR also maintained a Buy rating on the stock with a $6 price target.

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The company has a one-year high of $3.74 and a one-year low of $1.20. Currently, Asterias Biotherapeutics has an average volume of 218.2K.

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Asterias Biotherapeutics, Inc. is a clinical-stage biotechnology company, which is focused on developing and commercializing novel therapies in the emerging fields of cell therapy and regenerative medicine. The company is also focused on developing therapies to treat conditions with unmet medical needs and inadequate available therapies, with an initial focus on the therapeutic areas of oncology and neurology. Its product candidates include AST-OPC1, trial for spinal cord injuries; AST-VAC1, a patient specific cancer immunotherapy focused on acute myeloid leukemia; and AST-VAC2, a non-patient-specific cancer immunotherapy for non-small cell lung cancer. The company was founded on September 24, 2012 and is headquartered in Fremont, CA.