In light of the fact that the digital advertising niche has begun to see M&A activity, more deals are likely to follow suit. And Rocket Fuel looks to be the best buyout target in the group. That said, investors should never buy a stock solely on the basis of buyout hopes as many rumored deals fail to materialize. Yet even on its own merits, this stock holds great appeal. A buyout would merely be a kicker to the growth/value proposition. Simply moving up to an EV/sales ratio of 2.0, which would still be below the industry average, implies more than 100% upside for this beaten-down stock.
New report dated 2/12/2015 ....Reni Benjamin Ph.D con't.....
RNA world hypothesis—companies are flush with cash and may go shopping. A flurry of financing activity has given prominent companies, developing nucleic acid based therapeutics, cash to experiment with new partnerships, mergers, and acquisitions. Recent examples include Alnylam (ALNY; not rated) and Moderna therapeutics, which each raised $450 MM last month. Celsion has presented strong preclinical data showing that its TheraSilence platform can significantly knockdown several targets in including VEGFR-2 and the regulatory microRNA miR-145, with an approximate 50-fold preference for lung endothelium relative to other tissue types. The specificity for lung tissue and the one-component lipopolymer formulation distinguishes TheraSilence from other RNA delivery platforms, and we believe available preclinical data point to potential pulmonary applications for TheraSilence such as PAH, lung cancer, and cystic fibrosis. If correct, we believe the company has the potential to attract partnerships from one or more RNA companies currently evaluating Celsion’s uniquely-capable delivery platform.
Investment opinion. We are reiterating our Buy rating of Celsion and our 12-month target price of $8, based on a comparables analysis of similarly staged biotechnology companies. We recently had the opportunity to obtain an in-person update from the company’s management team, chiefly focusing on two assets that, in our opinion, inject new life into the company’s development programs and provide a crucial diversification for the company’s oncology-focused pipeline. While development of ThermoDox continues to advance in hepatocellular carcinoma (HCC) and recurrent chest wall breast cancer (RCWBC) and the company has identified a potential low-cost path to ThermoDox approval in China, we believe new assets centered on nucleic acid delivery, especially GEN-1 (formerly EGEN-001) and the TheraSilence platform, could generate significant shareholder value in the near-term. With both immuno-oncology and RNA-delivery assets taking center stage and approximately $35.7 MM in cash (pro forma) for clinical development, we believe Celsion represents an undervalued player with significant upside for the long-term.