H.C. Wainwright maintains $15 target on OCUL stock with Buy rating

Published 04/03/2025, 13:32
H.C. Wainwright maintains $15 target on OCUL stock with Buy rating

On Tuesday, H.C. Wainwright reaffirmed its Buy rating and $15.00 price target for Ocular Therapeutix (NASDAQ:OCUL), following the company’s latest financial results and updates on its clinical trials. According to InvestingPro data, analysts’ targets range from $14 to $22, suggesting significant upside potential from the current price of $5.93. Ocular Therapeutix reported a 15% year-over-year growth in total revenue for the fourth quarter of 2024, reaching $17.1 million and surpassing the firm’s expectations of $16.6 million. Despite this, the company experienced a net loss of $48.4 million, or ($0.29) per share, which was greater than the anticipated loss of $37.2 million.

For the entire year of 2024, Ocular Therapeutix saw a 9% year-over-year increase in total revenue, amounting to $63.7 million, with a net loss of $193.5 million, or ($1.22) per share. InvestingPro analysis reveals an impressive gross profit margin of 91.17% and strong liquidity, with current assets well exceeding short-term obligations. The management highlighted an amendment to the Special Protocol Agreement for its Phase 3 SOL-1 trial of AXPAXLI, an axitinib intravitreal implant for wet age-related macular degeneration (AMD (NASDAQ:AMD)). The amendment introduces re-dosing at Weeks 52 and 76, without altering the primary endpoint.

The SOL-1 trial has finished enrolling and randomizing 344 subjects across more than 100 sites in the U.S. and Argentina. With the new re-dosing protocol, the company aims to reduce the size of a subsequent SOL-R trial while maintaining its power, potentially expediting the new drug application process and supporting a dosing label for every 6-12 months. Management also noted that the SOL-1 trial has had excellent retention rates, and the majority of rescue treatments have met pre-specified criteria.

Top-line data from the SOL-1 trial are now expected in the first quarter of 2026, a shift from the previously anticipated fourth quarter of 2025. The efficacy data required for the new drug application will still include Week 36 results from SOL-1 and Week 56 results from SOL-R. With these considerations, H.C. Wainwright reiterated its positive stance on Ocular Therapeutix stock. InvestingPro subscribers can access 12 additional investment tips and a comprehensive analysis of OCUL’s financial health, which currently rates as ’FAIR’ with particular strength in price momentum metrics.

In other recent news, Ocular Therapeutix reported its fourth-quarter 2024 earnings, revealing a total revenue of $17.1 million, slightly below analyst estimates of $17.8 million. The company’s diluted earnings per share were $(0.29), which was wider than the projected $(0.26). Despite this earnings miss, the company ended the fiscal year with approximately $392 million in cash, expected to fund operations into 2028. Ocular Therapeutix also announced updates to its clinical programs, particularly for its Axpaxli treatment for wet age-related macular degeneration, receiving FDA approval for amendments to the Special Protocol Assessment. These changes include additional re-dosing and a reduction in the SOL-R trial size, potentially accelerating the trial timeline. JMP Securities adjusted its price target for Ocular Therapeutix to $19, maintaining a Market Outperform rating, while Raymond (NSE:RYMD) James reiterated a Strong Buy rating with the same price target. BofA Securities lowered its price target to $17 but maintained a Buy rating, citing confidence in Axpaxli’s long-term potential despite the adjusted timeline. These developments indicate a strategic focus on optimizing the path to market for Axpaxli while managing financial resources effectively.

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