H.C. Wainwright initiates coverage on Zevra Therapeutics stock with Buy rating

Investing.com - H.C. Wainwright assumed coverage on Zevra Therapeutics, Inc. (NASDAQ:ZVRA) Wednesday with a Buy rating and a price target of $26.00, citing the company’s successful transition to a commercial-stage rare disease company. The stock has shown remarkable momentum, delivering a 105% return over the past year, while InvestingPro data shows four analysts have recently revised their earnings estimates upward.

The research firm highlighted Zevra’s successful U.S. launch of Miplyffa (arimoclomol) for Niemann-Pick disease type C (NPC), noting that early results validate the company’s ability to outperform commercial expectations.

H.C. Wainwright believes Zevra stock remains undervalued based on the Miplyffa U.S. opportunity alone, suggesting current share prices reflect an unawareness of the company’s story and future growth potential rather than concerns about execution. This view aligns with InvestingPro’s Fair Value analysis, which indicates the stock is currently undervalued. The company maintains strong financial health with a current ratio of 3.02, demonstrating ample liquidity to support its growth initiatives.

The firm pointed to strong real-world persistency data from Miplyffa’s expanded access programs, which it says validates the long-term durability of revenue from early patient conversion and creates a solid foundation for additional growth drivers.

The European market opportunity for Miplyffa represents the most near-term and compelling growth driver beyond the U.S. market, according to the research note issued Wednesday.

In other recent news, Zevra Therapeutics reported a net loss of $3.1 million for the first quarter of 2025, equating to a loss of $0.06 per share. Despite this, the company’s revenue reached $20.4 million, surpassing analyst expectations of $16.02 million, primarily driven by their MyPlifa product. Zevra has also been advancing its European regulatory submissions for MyPlifa, aiming to expand its market presence. Additionally, the company confirmed the re-election of board members Wendy L. Dixon, Ph.D., and Tamara A. Favorito during its 2025 Annual Meeting of Stockholders. Stockholders also approved Ernst & Young LLP as the independent auditors for the fiscal year ending December 31, 2025. The company is focused on strategic initiatives, including the continuation of MyPlifa and Olpruva commercial launches and the advancement of the Phase III DISCOVER trial for salipolol. Zevra’s financial position was bolstered by $148.3 million from a PRV sale, enhancing its cash position to $217 million. These developments reflect Zevra’s ongoing efforts to strengthen its market presence and financial stability.

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