Wedbush Reiterates Outperform On Cubist Pharmaceuticals After Earnings

Wedbush Securities is out with a research report on Cubist Pharmaceuticals CBST after it reported earnings. It has an Outperform rating and a $40 price target on shares. In a note to clients, Wedbush Securities writes, "Reiterating our OUTPERFORM rating and our 12-month price target of $40/share. We arrive at our $40/share price target by calculating the NPV (15% discount rate) of CBST's adjusted net income through its anticipated exclusivity period of Dec. 24, 2017 ($32/share), adding ~$6/share for net cash in 12 months and $2 for the pipeline. Our analysis adjusts CBST's net income to remove G&A and R&D expenses in order to approximate the value of the CUBICIN franchise to an acquirer and assumes the current US Cubicin growth rate." Shares of CBST are down $1.31 today to $34.59, a loss of 3.65%.