Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
On Friday, Craig-Hallum raised the price target for Delcath Systems (NASDAQ:DCTH) to $21.00 from the previous $18.00, while maintaining a Buy rating on the stock. The firm's analyst cited Delcath's strong preliminary Q4 results, which surpassed expectations, as a key factor for the adjustment. Contrary to concerns about potential holiday seasonality affecting Q4 performance, mentioned during the Q3 earnings call, the impact was not as significant as the management had anticipated.
The analyst's optimism is supported by the steady number of treatments per month per center, which remained consistent with Q3 at approximately two. This has led to an increase in the firm's estimates, now projecting an average of 1.8 treatments per month per center throughout 2025. Additionally, Craig-Hallum forecasts Delcath will have 27 treatment centers operational by the end of 2025, which is slightly below the company's target of 30.
These projections contribute to an anticipated revenue of $81.5 million in 2025, which is above the current Street consensus of $76.1 million. The confidence in these figures is further reinforced by the 22 accounts currently accepting referrals, as noted on the Hepzato™ website. The analyst suggests that these estimates might even be on the conservative side.
The report also highlights Delcath's potential for a positive cash flow from operations in 2025, despite an anticipated $20 million increase in R&D spending for planned trials in metastatic colorectal cancer (mCRC) and metastatic breast cancer (mBC). This financial outlook, combined with the ongoing development of the product launch, contributes to Craig-Hallum's positive view on Delcath Systems shares for the year 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.