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RickShah

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RickShah

Re: Leee6 post# 18891

Friday, 10/02/2020 9:21:59 AM

Friday, October 02, 2020 9:21:59 AM

Post# of 43156
You would need to apply the risk adjustment that they use in their calculation. The analysts pps targets are always risk adjusted.
Lets say they use a 25% probability of successful covid approval.
After approval they estimate 1.2B sales and come up with a PPS of 100USD. Then you apply the 25% probability, which is how they arrive at 25USD.
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