BIVV

Bioverativ Inc

Healthcare


Presented:05/18/2017
Price:$53.81
Cap:$5.82B
Current Price:$104.98
Cap:$11.35B

Presented

Date05/18/2017
Price$53.81
Market Cap$5.82B
Ent Value$5.53B
P/E RatioN/A
Book Value$5.41
Div Yield0%
Shares O/S108.20M
Ave Daily Vol1,462,258
Short Int5.72%

Current

Price$104.98
Market Cap$11.35B
Bioverativ engages in discovery, research, development and commercialization of therapies for the treatment of hemophilia and other blood disorder. Its product includes Eloctate and Alprolix. The company is headquartered in Cambridge, MA.

Publicly traded companies mentioned herein: Biogen Inc (BIIB), BioMarin Pharmaceutical Inc (BMRN), Bioverativ Inc (BIVV), Johnson & Johnson (JNJ), Pfizer Inc (PFE), Roche Holding Ltd (RHHBY)

Highlights

In the presenter’s opinion, Bioverativ’s (BIVV) earnings power is not fully appreciated by the market and the stock is cheap. He is long shares of the niche hemophilia company in the low $50s, and sees a favorable risk/ reward based on the potential for earnings revisions and M&A. He gives BIVV no credit for its pipeline, and is modeling $4 per share of earnings in 2018 (vs the Street at $3.10-3.20). On EV/EBITDA (again, for 2018), he sees the stock trading at 7.5x his forecast (vs 9.5x the Street’s EBITDA estimate of ~$550mm). With the stock at $54 today, it trades at 19.5x and 11.5x full year 2017 Street EPS and EBITDA estimates, respectively. Thus, if his model proves to be accurate, the implied fair value of BIVV stock based on current market multiples is $78+ (19.5x $4 of future EPS), and it should trade up to that level over the next 6-12 months.

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Idea Discussion

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