Savara (SVRA) is back on investor radars after resubmitting its biologics license application, completing a tech transfer to Fujifilm, and aligning key analytical protocols with the FDA.
With an FDA filing decision expected in the near term and management expressing strong confidence in the updated package, the upcoming Guggenheim Securities Emerging Outlook, Biotech Summit presentation on February 11 is drawing extra attention from investors.
See our latest analysis for Savara.
At a share price of $5.73, Savara has seen a 22.7% 90 day share price return and a very strong 1 year total shareholder return of 104.6%. This suggests momentum has been building as investors weigh the resubmitted BLA, FDA interactions, and upcoming Guggenheim presentation.
If this regulatory story has your attention and you want to see what else is moving, now is a good time to scan 25 healthcare AI stocks for more potential ideas.
With the stock up strongly over the past year, trading at $5.73 and sitting well below the average analyst price target of $10.81, the key question is whether there is still a buying opportunity here or if the market is already pricing in future growth.
On a P/B of 15x, Savara trades well above the broader US Biotechs average of 2.6x, so the market is clearly paying up for this name.
P/B compares the company’s market value to its book value. It is often used for asset light, pre revenue or unprofitable biopharma businesses where traditional earnings metrics are less useful. For Savara, this high multiple sits alongside meaningful losses of $115.645m and no reported revenue, so the valuation appears to be anchored more to expectations than current financials.
Investors are assigning Savara a much richer valuation than the sector average. This suggests a focus on future revenue and earnings forecasts rather than today’s balance sheet. That premium stands in contrast to its low overall value score of 1, and leaves little room for this P/B ratio to look cheap relative to the wider US Biotechs group.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price to book ratio of 15x (OVERVALUED)
However, you still have to weigh binary FDA risk and the company’s ongoing loss of $115.645m with no revenue against that premium valuation.
Find out about the key risks to this Savara narrative.
With sentiment clearly split between enthusiasm for the FDA progress and concern about valuation and losses, it is worth checking the full picture for yourself. To weigh those trade offs in detail, take a look at the balance of 1 key reward and 1 important warning sign and see how they stack up against your own risk tolerance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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