UPDATE: Stifel Reiterates Raises PT On Cempra On Good Risk/Reward Profile

In a report published Wednesday, Stifel analyst Stephen Willey reiterated a Buy rating on Cempra Inc (NASDAQ: CEMP), and raised the price target from $22.00 to $33.00.

In the report, Stifel noted, “Despite recent price appreciation, we continue to like risk/reward ahead of what we believe will be early-1Q15/top-line P3 SOLITAIRE-ORAL data for solithromycin in community acquired bacterial pneumonia (CABP). Updated model changes include a shallower solithromycin launch trajectory, marginally-reduced peak CABP sales, and favorable risk adjustments to what were admittedly overly-conservative inputs driving our valuation methodologies. Target price increases to $33 (previously $22) and we believe recent acquisition multiples in what is proving to be a rapidly-consolidating antibiotic space comfortably support a 2-3x higher valuation. Remains our 2015 Top Pick.”

Cempra closed on Tuesday at $22.97.