H.C. Wainwright assumes coverage on MannKind stock with Buy rating

Investing.com - H.C. Wainwright has assumed coverage on MannKind (NASDAQ:MNKD) with a Buy rating and a price target of $9.00, according to a research note released Wednesday. The company, which has demonstrated strong revenue growth of 32.5% over the last twelve months and maintains a healthy gross profit margin of 74.6%, currently trades at $3.85 per share. According to InvestingPro data, analyst targets range from $7.00 to $12.00, suggesting significant upside potential.

The firm’s analysis is based on a discounted cash flow valuation using a 12.5% weighted average cost of capital and a 9.5x exit multiple on 2031 estimates.

H.C. Wainwright identifies Tyvaso DPI as the largest value driver for MannKind’s valuation, while maintaining a cautious outlook on the Afrezza product line with projected 2030 sales of $127 million.

The valuation model includes pipeline products MNKD-101 and MNKD-201, assigning them 40% and 30% probability of success assumptions, respectively.

The firm highlighted several risk factors to its investment thesis, including commercial execution challenges, clinical trial uncertainties, regulatory hurdles, and the risk that a partner controls commercialization of one of the company’s major valuation drivers. Despite these risks, MannKind maintains a strong financial health score according to InvestingPro analysis, with liquid assets exceeding short-term obligations and a moderate debt level.

In other recent news, MannKind Corporation reported its Q1 2025 financial results, revealing that revenue exceeded expectations, reaching $78.35 million. However, earnings per share (EPS) were slightly below forecasts at $0.04, compared to the anticipated $0.042. The revenue growth was driven by a 32% increase in Tyvaso DPI royalties and an 18% rise in collaboration and services revenue. Meanwhile, MannKind’s Chief Medical (TASE:BLWV) Officer, Burkhard Blank, announced his departure, with a transition plan set to conclude his employment by August 1, 2025. The company has entered into a transition agreement that includes a special bonus and continued salary payments for Blank. Additionally, MannKind is set to present findings from its INHALE-1 clinical trial at the American Diabetes Association’s 85th Scientific Sessions, focusing on Afrezza, an inhaled insulin powder. The company plans to submit a Supplemental Biologics License Application for a pediatric indication of Afrezza by mid-year. These developments come as MannKind continues to focus on its pipeline advancements and strategic growth initiatives.

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