Nuvo Pharmaceuticals Inc MRVFF

Bloom raises target price

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We have updated our forecasts based on 4Q-2020 results and expectation of increased sales and S,G&A as COVID-19 abates and Miravo moves forward with multiple product launches. We are also rolling our valuation model ahead by one year. As a result, our target price increases to $2.60 (was $2.30), and our rating remains BUY (Speculative risk). Target price based on average of DCF (12% discount rate) and 6x 2022E adjusted EBITDA. 6x reflects high debt level: C$126.3 MM; 5.2x net debt/2021E EBITDA) – continued de- leveraging may justify higher multiples in future periods.

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Bloom maintains target...   May 18/21 - We have made adjustments to our forecasts based on Miravo’s 1Q-2021 financial results. Target remains $2.60, and rating remains BUY (Speculative risk). Target price based on average of DCF (12% discount rate) and 5x 2022E adjusted EBITDA. 5x reflects high debt level (C$121.1 MM; 5.0x net debt/equity) – continued deleveraging may justify higher