Clear Street reiterates Buy rating on Ocular Therapeutix stock at $18

Published 05/08/2025, 17:30
Clear Street reiterates Buy rating on Ocular Therapeutix stock at $18

Investing.com - Ocular Therapeutix (NASDAQ:OCUL) shares fell 6% Tuesday after the company reported its second-quarter 2025 earnings results. The stock, which has gained over 65% in the past year according to InvestingPro data, is currently trading near its 52-week high of $12.35.

Clear Street reiterated its Buy rating on the stock with an $18.00 price target, despite the company’s shares trading down while the XBI biotech index remained flat. Ocular reported revenue of $13.5 million, roughly in line with expectations of $13.6 million, while expenses of $51.1 million exceeded the anticipated $43.1 million. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 10.22, though it remains unprofitable with a -$1.15 earnings per share over the last twelve months.

The stock weakness appears to stem from Ocular’s disclosure that it raised $97 million through its at-the-market (ATM) offering during the quarter, a capital raise investors had not expected this year. Despite this selling pressure, Clear Street noted the stock performed well throughout the second quarter.

Clear Street’s positive outlook centers on SOL-I, the first of two pivotal trials for Ocular’s lead asset Axpaxli, with data expected in the first quarter of 2026. The firm believes Axpaxli could become the standard of care for long-duration anti-VEGF injections upon potential launch as early as 2028.

Ocular’s current cash balance of $391 million provides runway into 2028, though Clear Street’s model anticipates additional funding may be needed by 2027 if the company pursues a more aggressive approach with diabetic indications, including non-proliferative diabetic retinopathy and diabetic macular edema. Analyst targets range from $14 to $22, suggesting potential upside. Get access to 15+ additional ProTips and comprehensive valuation analysis for OCUL through InvestingPro’s detailed research reports.

In other recent news, Ocular Therapeutix reported its second-quarter 2025 financial results, revealing a mixed performance. The company generated $13.5 million in total revenue, slightly below the projected $13.56 million but exceeding Raymond (NSE:RYMD) James’ estimate of $12.0 million. Despite the revenue beat, Ocular Therapeutix posted a diluted earnings per share loss of $(0.39), which was worse than both the forecasted $(0.35) loss and Raymond James’ projected $(0.37) loss. Revenue was primarily driven by Dextenza, with unit sales increasing 5% year-over-year and revenues rising approximately 25% quarter-over-quarter. However, the company faced challenges with reimbursement conditions, resulting in an 18% year-over-year revenue decline. Following these developments, Raymond James reiterated its Strong Buy rating on the stock with a $19 target. These financial results have been closely watched by investors and analysts alike.

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