US broker Jefferies has raised its price target for Arix Biosciences PLC (LON:ARIX) following the successful Nasdaq listings of portfolio groups Autolus and Iterum.
Autolus, especially, has rocketed higher since its IPO in June but Jefferies has a price target of US$37 (US$22 currently) for the cell therapy treatment pioneer, which would value Arix’s 7.9% stake at 65p per share.
READ: Arix Bioscience shares jump as largest investee firm Autolus files for proposed US IPO
Describing the biotech as anomalously cheap, the house broker said Arix is trading at a discount even to the estimated half-year net asset value of 180p, which allows nothing for the numerous commercial, clinical and funding events expected over the next twelve months.
Jefferies estimates Arix’s cash pile will be more than £135mln at the half-way point of 2018, which will comfortably fund £50-60mln of investments this year to attain the twenty-company portfolio target.
Further IPOs, funding and commercial agreements are likely, added the broker while key clinical milestones ahead include the Autolus ASH2018 data and trial initiations, plus trial starts at Verona, LogicBio, PreciThera, Mitoconix, and commercial scaling at Depixus.
The price target rises to 275p from 268p, reflecting the value of the listed portfolio companies (Autolus, Iterum, and Verona), the private companies and cash holding.
Shares were trading at 177.5p.