Benchmark maintains Kamada stock Buy rating with $15 target

Published 15/05/2025, 15:00
Benchmark maintains Kamada stock Buy rating with $15 target

On Thursday, Benchmark analysts maintained a positive outlook on Kamada Ltd . (NASDAQ: NASDAQ:KMDA), reiterating a Buy rating and a price target of $15.00. According to InvestingPro data, the biopharmaceutical company maintains excellent financial health with a "GREAT" overall score, supported by strong liquidity metrics and minimal debt exposure. Kamada’s first-quarter financials for 2025 were reported as aligning with expectations, showcasing a revenue increase of 17% to $44.0 million, up from the previous year, and an earnings per share (EPS) of $0.07, a rise from $0.04 per share in the same quarter of the previous year. These figures were consistent with Benchmark’s projections of $43.5 million in revenue and $0.07 EPS. The company’s attractive PEG ratio of 0.82 suggests it’s trading at a reasonable valuation relative to its growth prospects. Get deeper insights into Kamada’s valuation metrics and 7 additional key ProTips with InvestingPro.

The revenue growth for the quarter was primarily driven by a 19% surge in proprietary product sales, with significant contributions from Glassia and Kamrab, particularly in markets outside the United States. Additionally, the company saw an increase in royalty income from Glassia and sales of Varizig in North American markets.

Kamada’s management has confirmed its full-year 2025 guidance, projecting revenues to be between $178 million and $182 million, and adjusted EBITDA to range from $38 million to $42 million. Benchmark’s continued support for the Buy rating and $15 price target is based on these solid first-quarter results.

The company’s financial performance indicates a stable growth trajectory, particularly in the sales of its proprietary products and a consistent generation of royalty income. Kamada’s affirmation of its 2025 guidance suggests a confidence in maintaining this positive momentum throughout the year. With a current ratio of 3.3 and strong cash flows, the company appears well-positioned to fund its growth initiatives. Discover comprehensive analysis and detailed financial metrics in the Pro Research Report, available exclusively on InvestingPro.

In other recent news, Kamada Ltd. has announced the release of its first-quarter 2025 financial results scheduled for May 14, as per a filing with the U.S. Securities and Exchange Commission. This upcoming disclosure is eagerly anticipated by investors seeking insights into the company’s earnings and operational performance. Additionally, Kamada has informed shareholders about the withholding tax procedures for its special cash dividend, following regulatory guidelines for distribution. In a strategic expansion move, Kamada has opened a new plasma collection facility in San Antonio, Texas, with a capacity of 50,000 liters. This facility will collect both normal source and specialty plasma, with expected annual revenue from sales projected between $8 million and $10 million. Benchmark analysts have initiated coverage on Kamada with a Buy rating and set a price target of $15.00, highlighting the company’s growth in its plasma-derived product line. The analysts anticipate robust double-digit revenue growth driven by Kamada’s expanding plasma collection operations and active R&D pipeline. Kamada plans to submit approval applications for the new site to the U.S. FDA and the European Medicines Agency later this year. These developments underscore Kamada’s strategic initiatives to enhance its market presence and operational capabilities.

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