Wedbush Maintains Outperform on Chelsea Therapeutics

Wedbush is out with its report today on Chelsea Therapeutics CHTP, maintaining Outperform. In a note to clients, Wedbush writes, "We maintain our OUTPERFORM rating and fair value of $8. We believe the recent rise in CHTP resulted from the impact of data presented at ICPDMD and illustrates the degree that CHTP is undervalued. Our fair value is calculated based on the sum-of-parts for each drug/indication using a 30% annual discount from our peak annual sales projections and 1-10x multiple, depending on stage of development to reflect risk." Shares of CHTP closed Monday at $5.26, up 5.41% from Friday's close.