Citi Reports Pharmasset Price Target Of $200

According to Citi, Pharmasset VRUS 12-month target price of $200 is based on DCF analysis using a 10% discount rate that runs through 2025 with no terminal growth rate. Citi said that it believes that a 10% discount rate reflects a normalized rate that is appropriate given historical cost of capital for this type of company. “We believe that our penetration rates for Pharmasset's global hepC franchise are conservative across all virus types since the company is still relatively early in development and PSI-7977 will not be approved until H2:14.” Pharmasset closed yesterday at $100.87.