Roth ups Derma Sciences price target to $8.50

Roth Capital Markets raised its price target for Derma Sciences (NASDAQ:DSCI) to $8.50 from $7.25. The stock was quoted at $5.04 in afternoon trading on Wednesday.

Analyst Scott Henry writes that his updated model reflects the company’s acquisition of BioD and divestiture of the First Aid Division. “These changes are significantly accretive to forecasted 2017-2018 EPS at $0.10 and $0.30 a share (from -$0.10 and $0.05),” he said.

For all of year 2017, he is targeting the BioD acquisition would add about $30-million in revenues, while FAD would have been flattish around $16-million. “Thus, this drives about a $15-million net revenue boost in 2017, which should continue to increase thereafter,” he added.


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