Investors will be rewarded for buying Ultragenyx at $35, says Citi

Citi says Ultragenyx (RARE) shares are back to levels that reflect a four-times multiple on current-year sales guidance of $640M-$670M plus cash. The “back-of-the-envelope math” ignores expected base business growth that well-exceeds the cost-of-capital, the analyst tells investors in a research note. The firm says Ultragenyx’s “rich pipeline has inexplicably zero value” despite its depth and “late-stage weight.” The stock is already at a “well-described floor valuation,” Citi contends. It believes investors will be rewarded for buying Ultragenyx around $35. The firm keeps a Buy rating on the name with a $110 price target