Brookline Capital lowers Outlook Therapeutics stock price target on cash balance

Brookline Capital Markets lowered its price target on Outlook Therapeutics Inc. (NASDAQ:OTLK) stock to $10.00 from $11.00 on Tuesday, while maintaining a Buy rating on the shares. The stock, currently trading at $1.84, sits well below its 52-week high of $9.25, with analyst targets ranging from $3.00 to $21.00.

The firm cited a lower cash balance as the primary reason for the price target reduction, though it continues to maintain its Europe-only discounted cash flow valuation model for the company. According to InvestingPro data, the company’s current ratio of 0.72 indicates short-term obligations exceed liquid assets, highlighting the cash balance concerns.

Outlook Therapeutics reported its second-quarter fiscal year 2025 results, which Brookline Capital described as containing "no surprises." The company also announced that the FDA had accepted the resubmission of the Biologics License Application (BLA) for ONSO 5010, with a PDUFA date set for August 27, 2025.

The company remains on schedule to launch its LYTENAVA product in the United Kingdom (TADAWUL:4280) and Germany in the second quarter of calendar year 2025, according to Brookline Capital’s research note.

Despite the price target reduction, Brookline Capital maintained its Buy rating on Outlook Therapeutics, indicating continued confidence in the company’s overall business prospects.

In other recent news, Outlook Therapeutics has announced the commercial availability of LYTENAVA™ in Germany and the UK for treating wet age-related macular degeneration. This drug marks the first approved ophthalmic formulation of bevacizumab for this condition in these regions. Meanwhile, the company has launched a public offering of its common stock and accompanying warrants, with proceeds intended for general corporate purposes and working capital. The offering is subject to market conditions, and BTIG, LLC is the sole book-running manager for the transaction.

Additionally, the U.S. FDA has set a Prescription Drug User Fee Act (PDUFA) date of August 27, 2025, for reviewing the Biologics License Application for ONS-5010, the U.S. version of LYTENAVA™. This development follows the FDA’s acceptance of the resubmitted application, which includes data from the NORSE EIGHT study. Guggenheim analysts maintain a Buy rating on Outlook Therapeutics with a price target of $10, highlighting the potential for ONS-5010 to gain approval and benefit from 12 years of regulatory exclusivity.

Ascendiant Capital also maintains a Buy rating on the company’s stock, though it recently lowered its price target to $21 from $24. The analysts at Ascendiant emphasize the balance between the company’s high risks and its growth prospects. These updates reflect significant steps for Outlook Therapeutics as it continues to expand its market presence and prepare for potential regulatory approvals.

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