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AC Immune

Alzheimer's focused AC Immune has multiple shots on goal, says Jefferies, which targets $25

Jefferies targets a punchy $25 for the shares, well over three times' the current price of at $7.30

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Last week the group confirmed that all key pipeline programmes were on-track

Alzheimer's focused biotech AC Immune Ltd (NASDAQ:ACIU) is undervalued in the light of its multiple shots on goal for treating the brain disease, says US broker Jefferies, which rates shares a 'buy'.

Jefferies targets a punchy $25 for the shares, well over three times' the current price of at $7.30 - up 2.53% on the day.

Its candidate Crenezumab underpins the broker's valuatrion of the group, which is partnered with Genentech in a Phase III trial with data expected in the second half of 2020. The broker estimates US$4.4bn world wide peak sales for the drug by 2028 estimates for $16 a share net present value (NPV).

Analyst Peter Welford notes that ACIU has three other Phase Ib-IIa products for a pipeline providing a multitude of catalysts by 2018.

He reckons the biotech's below $300mln enterprise value (EV) substantially undervalues the group.

Last week the group confirmed that all key pipeline programmes were on-track, he adds.

"We still expect a further update on anti-Abeta vaccine ACI-24 by YE, with the 4th dose cohort ongoing in Phase I/IIa."

Welford adds: "We forecast cash to be adequate for burn well into 2019E, by which time a significant number of catalysts could crystallise value."

Quick facts: AC Immune

Price: $5.38

Market: NASDAQ
Market Cap: $363.49 m
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