Wang & Lee Group board approves 250-to-1 reverse share split
On Tuesday, BofA Securities announced a decrease in the price target for Y-mAbs Therapeutics (NASDAQ:YMAB) to $12.00 from the previous $14.00, while maintaining a Neutral stock rating. The adjustment follows a recent performance dip in YMAB shares, which fell by 7.3% as the company provided updates on its 2025 guidance and reiterated its corporate priorities. According to InvestingPro data, YMAB’s stock has declined over 70% in the past year, currently trading at $4.82, significantly below its 52-week high of $19.12. These priorities include the establishment of Danyelza and radiopharmaceutical business units, in line with earlier corporate updates this year.
The firm’s analysis suggests that the realignment focusing on Danyelza could bolster the drug’s launch, which has been losing momentum. However, the guidance for the current year suggests that the company may face another year of rebuilding before returning to growth. Despite challenges, InvestingPro data shows impressive gross profit margins of 88.83%, though analysts expect net income to decline this year. BofA Securities acknowledges the potential for the radiopharmaceutical business unit to drive the company’s share value, particularly looking forward to the GD2-SADA update expected in the second quarter of 2025.
Despite the positive outlook on the company’s realignment, BofA Securities has reiterated a Neutral stance, setting the new price objective at $12. The decision reflects the slower than anticipated uptake of Danyelza and the ongoing efforts required to mitigate risks associated with the SADA platform. The firm’s revised model takes into account a reduced revenue forecast for Danyelza, adjusting market share expectations downward, and anticipates increased operating expenses as per the company’s guidance.
Y-mAbs Therapeutics’ financial position is projected to remain secure, with a cash runway extending into 2027. InvestingPro analysis indicates the company holds more cash than debt and maintains strong liquidity with a current ratio of 3.92. The company’s focus on its radiopharmaceutical division and the upcoming updates on its GD2-SADA platform are expected to be significant determinants of its stock performance in the near future. Based on InvestingPro’s Fair Value analysis, YMAB appears undervalued at current levels. Investors can access 8 additional ProTips and comprehensive financial analysis through the InvestingPro platform.
In other recent news, Y-mAbs Therapeutics reported its fourth-quarter and full-year 2024 financial results, revealing a revenue increase of 13% year-over-year to $26.5 million, meeting analysts’ expectations. However, the company’s revenue guidance for 2025, projected between $75 million and $90 million, fell short of the consensus estimate of $104 million. Clear Street analysts responded by lowering their price target for Y-mAbs from $21.00 to $18.00 but maintained a Buy rating, citing potential profitability from the company’s flagship product, Danyelza, and the SADA platform.
The company’s fourth-quarter earnings per share (EPS) were -$0.15, missing the forecast of -$0.1165, with revenue reported at $24.5 million, below the anticipated $26.99 million. Y-mAbs’ management highlighted competitive pressures and ongoing trials as challenges to growth, yet they remain optimistic about future prospects. Despite these financial setbacks, Danyelza maintained a stable market share of 15-17% in the U.S. anti-GD2 market, and international revenue showed significant growth, particularly in Western Asia, Latin America, and China.
The company ended the year with $67.2 million in cash and cash equivalents, down from $78.6 million in 2023. Y-mAbs provided guidance for 2025, anticipating total operating expenses between $116 million and $121 million, and expressed confidence in its cash runway through 2027. The company continues to advance its SADA platform, with promising trial results and new targets expected to be announced in the second quarter.
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