Zacks Investment Research downgraded shares of Emergent BioSolutions, Inc. (EBS) from OUTPERFORM to NEUTRAL on January 09, 2015, with a target price of $29.00.
Emergent BioSolutions' third-quarter earnings of $0.67 per share trumped the Zacks Consensus Estimate of $0.37. The company aims to drive growth by improving efficiencies and trimming its cost structure. We are also positive on the company securing a $29 million U.S. contract for developing a dry formulation of NuThrax – a next generation Anthrax vaccine. Moreover, the company's efforts to get a manufacturing facility approved which has the capacity to produce more than three times the existing amount of BioThrax is on track. However, we remain concerned about the company's overdependence on BioThrax for revenues. Thus, we revert to a Neutral recommendation on the stock.
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