Benchmark cuts Anebulo stock target to $3, keeps Speculative Buy

Published 22/05/2025, 14:32
Benchmark cuts Anebulo stock target to $3, keeps Speculative Buy

On Thursday, Benchmark analysts adjusted their outlook on Anebulo Pharmaceuticals (NASDAQ: ANEB), reducing the price target from $8.00 to $3.00, while continuing to endorse the stock with a Speculative Buy rating. The revision followed the company’s third-quarter financial report for fiscal year 2025, which ended in March. According to InvestingPro data, the stock has shown resilience with a notable 11% gain over the past week, despite trading at $1.12 with a market capitalization of $46 million. Anebulo Pharmaceuticals disclosed a net loss of $1.7 million, equating to a loss of $0.04 per share. Research and development (R&D) expenses accounted for $600,000, and general and administrative costs amounted to $1.2 million for the quarter. These figures were set against a comparable net loss of $1.7 million, or $0.06 per share, reported in the same period the previous year.

The company also shared updates on its clinical pipeline, emphasizing the prioritization of intravenous selonabant, a treatment aimed at pediatric patients suffering from cannabis-induced Central Nervous System (CNS) depression. This focus on advancing their clinical program is part of Anebulo Pharmaceuticals’ strategic initiatives.

The decision by Benchmark to maintain a Speculative Buy rating indicates a continued belief in the potential of Anebulo Pharmaceuticals’ stock despite the price target adjustment. The lowered price target to $3.00 is attributed to an increase in share count and a broader reduction in valuations across the biotech sector.

Anebulo Pharmaceuticals has not publicly responded to the revised price target at this time. The company’s stock performance following this announcement will be closely watched by investors and analysts alike, as it reflects broader market trends and investor sentiment towards the biotech industry. InvestingPro subscribers have access to 5 additional investment tips and comprehensive analysis tools that can help evaluate biotech investments like ANEB more effectively. The stock currently appears overvalued based on InvestingPro’s Fair Value analysis.

In other recent news, Anebulo Pharmaceuticals has successfully regained compliance with Nasdaq’s listing rules following the removal of certain restrictions on its common stock. This resolution comes after a private placement in December 2024, which had initially led to compliance issues due to voting and transfer restrictions. The company’s shareholders voted to lift these restrictions, allowing Anebulo to meet Nasdaq’s requirements. In another development, Anebulo has expanded its authorized common stock from 50 million to 75 million shares and restructured its Board of Directors to allow all directors to stand for election annually. These changes, approved by stockholders, aim to provide more flexibility for future corporate actions. Furthermore, Benchmark analysts have maintained a Speculative Buy rating on Anebulo’s stock, with a target price of $8.00, following the company’s financial results for the second quarter of fiscal year 2025. Anebulo reported a net loss of $2.5 million for the quarter, showing a slight improvement from the previous year. The company also completed a $15 million equity private placement, bolstering its cash reserves.

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