Aegis Upgrades Sinovac Biotech to Buy (SVA)

Sinovac Biotech (NYSE:SVA) was upgraded by equities researchers at Aegis from a “hold” rating to a “buy” rating in a research report issued on Thursday, American Banking & Market News reports. The firm currently has a $7.00 target price on the stock. Aegis’ price target points to a potential upside of 53.17% from the stock’s previous close.

The analysts wrote, “Yesterday, Sinovac reported 2Q 2013 financial results. Total revenue was reported at $17.5mm, beating our projection of $11.6mm. Diluted earnings were $0.02 per share, higher than our original estimate of a loss of $0.06 per share. This is mainly due to higher sales of the company’s hepatitis vaccines. Management also indicated that the NDA review of the EV71 vaccine targeting hand, foot, and mouth disease (HFMD) is moving into the technological review process stage at the Center for Drug Evaluation of the SFDA, which is the Chinese equivalent of the U.S. FDA. We have adjusted our projections accordingly and our current estimated revenue numbers for 2013 and 2014 are $62.3mm and $80.5mm respectively, with the diluted loss per share being $0.08 and $0.14 per share. We are upgrading the stock from a Hold to a Buy rating and institute a 12-month price target of $7.00 per share.”

Sinovac Biotech (NYSE:SVA) traded down 0.42% on Thursday, hitting $4.551. Sinovac Biotech has a 52-week low of $2.14 and a 52-week high of $4.80. The stock’s 50-day moving average is currently $4.01. The company’s market cap is $250.7 million.

Sinovac Biotech Ltd. (NYSE:SVA) is a holding company that conducts its business in China through its 71.