BTIG maintains $12 target on Orchestra BioMed stock

Published 01/04/2025, 18:00
BTIG maintains $12 target on Orchestra BioMed stock

On Tuesday, BTIG analyst Marie Thibault confirmed a Buy rating on Orchestra BioMed Inc. (NASDAQ:OBIO) with a steady price target of $12.00, significantly above the current trading price of $3.75. According to InvestingPro data, the stock is currently trading near its 52-week low, with analyst targets ranging from $12 to $20. Thibault’s evaluation followed the company’s reported fourth-quarter revenue of $253K, which fell short of the anticipated consensus of $839K and BTIG’s own estimate of $934K. The lower revenue was attributed to uneven Partnership revenue during the quarter due to the timing of costs associated with the Virtue SAB program.

Orchestra BioMed’s operating expenses for the fourth quarter were reported to align with BTIG’s expectations. The company utilized approximately $15 million from its credit facility in the fourth quarter and concluded the year 2024 with a solid balance of $66.8 million in cash, equivalents, and marketable securities. InvestingPro analysis shows the company maintains impressive gross profit margins of 92.71% and a healthy current ratio of 4.23, indicating strong short-term liquidity despite rapid cash utilization.

The company’s BACKBEAT pivotal trial is progressing as anticipated, with management highlighting multiple recent and forthcoming center activations, as well as positive enrollment trends. Thibault noted that the next significant event likely to influence Orchestra BioMed’s stock could be the announcement of a resolution in the second quarter of 2025 regarding the ongoing partnership restructuring negotiations with Terumo Corporation.

BTIG’s price target for Orchestra BioMed is derived from a 4.5x enterprise value to sales multiple applied to their 2034 sales estimate. This valuation also incorporates a discounted cash flow (DCF) analysis with a 10% discount rate and a 1% terminal growth rate. The analyst’s commentary concluded with a reiteration of the Buy rating, without suggesting any major adjustments to their financial model for Orchestra BioMed.

In other recent news, Orchestra BioMed Inc. has been the focus of multiple analyst reports, highlighting its ongoing developments and future potential. BTIG analysts initiated coverage on the company with a Buy rating and a price target of $12.00, emphasizing the innovative nature of its clinical-stage products aimed at hypertension and coronary artery disease. Meanwhile, H.C. Wainwright reaffirmed their Buy rating with a $14.00 price target, citing recent progress in the company’s BACKBEAT study, which is a significant trial focusing on uncontrolled hypertension. Barclays (LON:BARC) also began coverage on Orchestra BioMed with an Overweight rating and a higher price target of $16.00, noting the company’s novel approach to medical device development and strategic partnerships.

The BACKBEAT study, a pivotal trial for the company’s AVIM therapy, is enrolling patients and is expected to complete enrollment by the first half of 2026. Barclays highlighted the company’s ability to leverage global commercial distribution and manufacturing through partnerships, which could lead to accelerated earnings. Orchestra BioMed’s first commercial launches are projected for 2028, marking a significant timeline until revenue generation. Analysts from BTIG and Barclays have used enterprise value to sales multiples for their price targets, considering future sales estimates and discount rates. These developments underscore the company’s strategic focus on innovation and partnerships in the medical technology sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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