Merrill Lynch analyst Maureen McGann on Wednesday initiatedcoverage of Ecogen Inc. with an "above average" rating. McGannsaid stock of the Langhorne, Pa., maker of Bacillusthuringiensis-based biopesticides appears undervalued in theintermediate and long term.
Ecogen stock (NASDAQ:EECN) closed Wednesday at $10.88, up88 cents. McGann's 12-month price objective for the stock is$14 to $16.
McGann said she expects Ecogen to break even in 1993 and tobecome profitable in 1994. She forecasts a 1991 loss of 42cents a share, compared with an 88 cents per share loss in1990.
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