Cantor maintains Overweight rating on MannKind stock at $9 target

Published 21/03/2025, 12:38
Cantor maintains Overweight rating on MannKind stock at $9 target

On Friday, Cantor Fitzgerald reaffirmed its Overweight rating and $9.00 price target for MannKind Corporation (NASDAQ:MNKD), following a series of meetings in Europe with the company’s CEO, Michael Castagna, and his team. The firm highlighted MannKind’s progress beyond its initial inhaled insulin product, emphasizing the company’s shift towards a focus on orphan lung diseases and a more robust pipeline.

The Cantor Fitzgerald analyst noted the transformation MannKind has undergone, pointing out the company’s clearly-defined strategy for orphan lung diseases such as pulmonary arterial hypertension (PAH), idiopathic pulmonary fibrosis (IPF), and nontuberculous mycobacteria (NTM) lung disease. The company’s pipeline includes a phase 3 program for NTM and a phase 2 program for IPF. This transformation has contributed to impressive revenue growth of 43.5% over the last twelve months. Get deeper insights into MannKind’s growth strategy and 10+ additional ProTips with InvestingPro.

MannKind’s financial position was also a subject of positive commentary, with the analyst mentioning the company’s minimal debt, profitability, and positive cash flow. The company’s strong financial health is reflected in its current ratio of 3.28 and moderate debt levels, while generating $32.8 million in levered free cash flow over the last twelve months. The company’s risk profile was described as having very little binary event risk, which is starting to attract investor interest, especially in the current macroeconomic environment.

Despite the progress, the analyst acknowledged that there is still some time and de-risking required before MannKind’s story fully materializes, particularly regarding data sets for NTM and IPF, as well as a commercial inflection for Afrezza, its inhaled insulin product.

The analyst’s commentary concluded with an observation of the increasing appreciation among investors for MannKind’s ongoing transformation into a potentially differentiated orphan lung company—one that might undergo further change in the coming years. The company’s CEO and CFO are scheduled to be in New York City and Boston in early April for meetings with interested parties.

In other recent news, MannKind Corporation reported impressive financial results for the fourth quarter of 2024. The company achieved earnings per share of $0.08, significantly surpassing the forecast of $0.03. Revenue for the quarter reached $76.77 million, exceeding expectations of $74.02 million. This performance marks a 31% year-over-year increase in quarterly revenue, while full-year revenue for 2024 rose by 43% to $286 million. MannKind also made substantial progress in reducing its debt by $236 million, improving its financial position. Analysts from Cantor Fitzgerald and Leerink Partners have shown interest in the company’s strategic focus on expanding its product offerings and market presence. The company is preparing for the pediatric launch of its flagship product, Afrezza, expected in the first half of 2025. MannKind’s CEO, Michael Castagna, expressed optimism about the company’s future, highlighting the ongoing clinical trials for new products like clofazamine and natinib.

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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