DBV Technologies: SG no longer a seller - raises target.

(CercleFinance.com) - On 31 October Société Générale (SG) upgraded its rating on the biotech share DBV Technologies, which over the past ten days has been hammered in the market by mixed clinical results for Viaskin Peanut, its main candidate drug.


SG has therefore upgraded its previous sell rating to hold. Taking a "more constructive view on the stock," analysts have also raised their 12-month target price from 33 euros to 45 euros (+36.4%).

Analysts react to the group's comments on its cash (170.5 million euros at end-September) which the biotech group presented this week. DBV therefore used only ten million euros of cash per month in Q3, SG calculates, which points out that the figure announced largely exceeds its own expectations (125 million euros).

As a result, “we cut our operating expense estimates and stick with a E10m monthly burn rate” the report argues. Above all, SG adds, "we no longer expect 30% dilution from a capital increase as there appears no need for one in the short term," which explains why SG has raised its target price.


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