Analyst Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Emergent Biosolutions and keeping the price target at $15.00.
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Ram Selvaraju has given his Buy rating due to a combination of factors that highlight Emergent BioSolutions’ strong market position and growth potential. The company has recently secured a significant $29 million multi-product supply agreement with an international government, which includes countermeasures for threats such as smallpox, anthrax, and botulism. This order, along with other contracts, supports the company’s projected revenue growth, with expectations of $791.1 million in 2025 and $1.155 billion in 2026.
Additionally, the increased defense spending commitments by NATO members and the rising demand for Emergent’s medical countermeasures internationally further bolster the company’s expansion prospects. Selvaraju’s valuation employs a discounted cash flow methodology, resulting in a 12-month price target of $15 per share. Despite potential risks such as competition and contract acquisition challenges, the company’s strategic positioning in the defense sector makes it an attractive investment opportunity.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EBS in relation to earlier this year.