Eton shares hold as H.C. Wainwright reiterates $33 target

Published 19/03/2025, 12:34
Eton shares hold as H.C. Wainwright reiterates $33 target

On Monday, H.C. Wainwright maintained a Buy rating on Eton Pharmaceuticals (NASDAQ:ETON) with a steady price target of $33.00, representing the high end of analyst targets ranging from $23 to $33. The stock has shown remarkable momentum, delivering a 315% return over the past year. The firm’s analyst highlighted Eton Pharmaceuticals’ latest financial results for the fourth quarter of 2024 and provided insights into the company’s strategic focus and product pipeline. According to InvestingPro analysis, the company maintains strong financial health with multiple growth indicators.

Eton Pharmaceuticals reported its 4Q24 financials on March 18, showing solid revenue growth of 23.3% and maintaining a healthy current ratio of 2.06, indicating strong liquidity. The company demonstrated its commitment to growing its existing product portfolio, advancing internal pipeline programs, and exploring potential acquisitions. The company is preparing for the mid-2025 launch of ET-400, a hydrocortisone oral solution, contingent upon a favorable decision by the FDA on the upcoming PDUFA date set for May 28.

Despite the strong sales performance of ALKINDI SPRINKLE, Eton noted a significant discontinuation rate among pediatric patients due to the product’s granular texture. ET-400’s liquid formulation is expected to overcome this challenge and, upon its launch, is anticipated to be well-received, contributing modestly to 2025 revenues and becoming a major revenue driver in subsequent years.

Eton’s management projects that the combined peak annual revenue of ET-400 and ALKINDI SPRINKLE could surpass $50 million. With these projections and the company’s strategic initiatives in place, H.C. Wainwright reaffirmed their positive stance on Eton Pharmaceuticals, sustaining the 12-month price target of $33.00 per share.

In other recent news, Eton Pharmaceuticals announced the successful completion of a pivotal bioequivalence study for its proprietary oral solution, ET-600, intended to treat central diabetes insipidus. The company plans to submit a New Drug Application to the FDA in April 2025, marking a significant step toward potentially introducing the only FDA-approved oral liquid formulation of desmopressin. In addition, Eton has launched Galzin capsules, an FDA-approved zinc therapy for Wilson disease, through Optime Care, accompanied by the Eton Cares patient support program. This initiative offers a $0 co-pay for eligible patients and comprehensive support services.

H.C. Wainwright adjusted its price target for Eton Pharmaceuticals to $33.00 from $37.00, maintaining a Buy rating, citing Eton’s aggressive expansion plans and revenue growth projections. The firm forecasts a 20% increase in revenue for 2024, with a significant jump expected in 2025 due to recent acquisitions and anticipated product launches. Meanwhile, B.Riley initiated coverage on Eton with a Buy rating and a $21.00 price target, highlighting optimism around Increlex and ET-400 as revenue drivers. The firm notes Eton’s strategy of acquiring under-invested products and efficient market penetration as key factors in its positive outlook.

Furthermore, H.C. Wainwright raised its price target for Eton to $17.00, following the acquisition of Galzin, with expectations for its U.S. commercialization to contribute to Eton’s growth. Analysts estimate Galzin could generate $0.9 million in revenue in 2025, with potential growth to $5.1 million by 2030. These developments reflect Eton’s continued efforts to expand its portfolio and enhance its market presence in the rare disease treatment space.

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