Wedbush Reiterates OP Rating on SIGA Technologies

Wedbush is reiterating its Outperform rating on shares of SIGA Technologies SIGA. “We derive our $23/share price target by applying an 11x multiple to our estimate of the net profits from 2015 ST-246 US sales (50% net after tax margin), discounted 20% annually, added to the estimated cash balance of the company in 2015 ($971 million), discounted 20% annually,” Wedbush writes. “The full, discounted value of the award ($38/share) is then risk-adjusted by 40% to account for the chance that the full option amount is not exercised by the US government. We do not take into account the potential for ex-US stockpiling.” SIGA closed Monday at $10.87.