Emergent BioSolutions: Revising My Valuation

I last covered Emergent BioSolutions (EBS) in July 2018. Since then, much has changed for the world and the overall pharmaceutical industry. The stock has managed to swoop right past my target price and is now trading at new highs.

In fact, this small life sciences company with a special focus on tackling public threats, be it biological, chemical, or nuclear, is up 29.66%. These returns are exceptional in such difficult times, considering that the stock plunged by over 20% on June 8 after an unfavorable court decision.

While the risk profile of the company has definitely increased after this adverse announcement, the long-term fundamentals are still very much in place. Today's world requires a COVID-19 vaccine, and Emergent continues to play an integral part in our efforts towards this ultimate goal. Hence, this pullback has opened up an entry opportunity for retail investors with above-average risk appetite and a time frame of one to two years.

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