Stifel Raises TargetStifel’s Justin Keywood moves his Cipher Pharmaceuticals Inc. target to $17 from $16 with a “buy” rating. The average is $17.63. “We raise our target price ... to reflect increased confidence on integration efforts of Natroba but also as in the midst of a more prevalent lice season,” he said. “Cipher is a specialty pharma company, focused on dermatology with a high 60-per-cent EBITDA margin base business and strong FCF conversion. • The company announced the US$89.5-million acquisition of Natroba in July, which more than doubles the business’ EBITDA with free cash flow inflection, including from the use of $200-million in tax loss credits. • Natroba also has the commercial infrastructure to support a revenue level in excess of US$100-million, in our view, suggestive of additional operating leverage. • Our new $17.00 target reflects a slightly higher multiple and expected seasonal strength in Q3/Q4. • We estimate Cipher is still pursuing a pipeline of 25 assets to leverage the U.S. commercial infrastructure in-place.”