Delcath stock price target raised to $29 at H.C. Wainwright

On Tuesday, H.C. Wainwright increased its price target for Delcath Systems (NASDAQ:DCTH) shares to $29.00, up from the previous $24.00, while maintaining a Buy rating on the stock. Currently trading at $16.11, the company has strong analyst support, with targets ranging from $21.00 to $29.47. The firm’s analyst cited the potential impact of Delcath’s decision to enter into a Medicaid National Drug Rebate Agreement (NDRA) on May 22 as a basis for the adjustment. According to InvestingPro data, the stock has delivered an impressive 107% return over the past year.

The analyst highlighted that the NDRA, established by Congress in 1990, offers drug manufacturers access to patients across all Medicaid programs in the 50 states and the District of Columbia, as well as Medicare Advantage programs, in exchange for providing a rebate. The agreement is expected to broaden the patient base for Delcath’s HEPZATO kit and contribute to the company’s sustainable growth.

Delcath’s management has indicated that the NDRA could lead to increased adoption of the HEPZATO kit, particularly in hospitals that have previously not used the product due to their patient profiles. The entry into the NDRA is anticipated to make the HEPZATO kit available to all Medicaid and Medicare Advantage programs, thereby significantly expanding its reach.

The process of entering into the NDRA has been initiated by Delcath, with expectations for the agreement to become effective starting from the third quarter of 2025. While specific details regarding the rebate Delcath will offer under the NDRA are not disclosed, the statutory rebate required from drug producers stands at 23.1%.

In support of the company’s strategic move and its implications for future growth, H.C. Wainwright reaffirmed its Buy rating on Delcath Systems. The revised 12-month price target of $29 reflects the analyst’s confidence in the stock’s potential, up from the previously set target of $24 per diluted share. InvestingPro analysis indicates the stock is currently undervalued, with a "GREAT" overall financial health score of 3.32. Subscribers can access 13 additional ProTips and comprehensive financial metrics in the Pro Research Report, providing deeper insights into Delcath’s growth trajectory and market position.

In other recent news, Delcath Systems has reported a strong first-quarter performance for 2025, surpassing earnings expectations with an EPS of $0.03, compared to the forecasted $0.02. The company also exceeded revenue forecasts, posting $19.8 million against the projected $15.51 million. This robust performance is attributed to strong sales in both the U.S. and Europe, with Delcath reporting a net income of $1.1 million, a significant improvement from a $11.1 million loss in the previous year. Gross margins improved to 86%, indicating enhanced operational efficiency.

Analysts at BTIG reiterated their Buy rating on Delcath with a $23 price target, following the company’s announcement of its full-year 2025 guidance and plans to join the Medicaid National Drug Rebate Agreement Program. Delcath forecasts total revenue for 2025 to be between $94 million and $98 million, marking a 158% year-over-year increase. Clear Street analysts also raised their price target for Delcath from $22.00 to $26.00, citing the company’s strong commercial performance and ability to consistently exceed financial estimates.

Delcath’s participation in the NDRA program aims to broaden patient access, potentially impacting revenue per treatment but acting as a catalyst for higher treatment volumes. The company anticipates a significant increase in the total volume of Hepzato treatments, expecting at least a 200% rise compared to 2024. These developments reflect Delcath’s strategic commercial initiatives and the anticipated growth trajectory of its liver cancer treatment, Hepzato.

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