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On Wednesday, H.C. Wainwright reaffirmed their positive stance on Corvus Pharmaceuticals (NASDAQ:CRVS), reiterating a Buy rating and a price target of $11.00. This follows Corvus Pharmaceuticals’ announcement of their fourth-quarter financial results for 2024 on March 25, 2025. The company disclosed a net loss of $1.02 per share, which was slightly higher than the consensus estimates of a $0.92 per share loss. According to InvestingPro data, the stock has experienced significant volatility, with a 123% gain over the past year despite a recent 11% decline in the past week. Despite not generating any revenue for the year, which was expected by market analysts, the firm’s financial outcome prompted a review of H.C. Wainwright’s financial model for Corvus.
Looking ahead to 2025, H.C. Wainwright anticipates that Corvus Pharmaceuticals will continue to operate without generating revenue and projects a net loss of $0.43 per share. In their analysis, the research firm took into account the company’s financial position at the end of 2024, noting Corvus had reported having $52 million in cash and cash equivalents. InvestingPro analysis confirms the company holds more cash than debt on its balance sheet, with a minimal debt-to-equity ratio of 0.03. According to H.C. Wainwright, this capital reserve is deemed adequate to support the company’s operational expenses through the first quarter of 2026.
The analyst from H.C. Wainwright, Sean Lee, provided insights into the company’s financial health and future prospects. He emphasized the significance of the cash reserves, stating, "At the end of 2024, the company reported cash and cash equivalents of $52M, which we believe is sufficient to fund operations through 1Q26." This statement underscores the firm’s belief in Corvus Pharmaceuticals’ financial stability over the short to medium term. InvestingPro data shows the company maintains a "Fair" overall financial health score, though it’s worth noting that additional financial metrics and 8 more ProTips are available to subscribers.
The endorsement from H.C. Wainwright comes at a crucial time for Corvus Pharmaceuticals as they navigate a period without revenue and focus on managing their financial resources efficiently. The reiterated Buy rating and $11 price target reflect confidence in the company’s strategic planning and financial management, as well as its potential for future growth. Based on comprehensive analysis available in the Pro Research Report, one of 1,400+ detailed company analyses available on InvestingPro, the stock is currently trading slightly above its Fair Value.
In other recent news, Corvus Pharmaceuticals reported a wider-than-expected loss for the fourth quarter of 2024, with an earnings per share (EPS) of -$0.18, missing analyst forecasts of -$0.12. The company recorded a net loss of $12.1 million for the quarter, attributed to increased research and development (R&D) expenses, which rose by $2 million compared to the previous year. Despite the financial setback, Corvus maintains a strong cash position, with $52 million in cash and equivalents as of December 31, 2024, providing operational runway into the first quarter of 2026. The company’s focus on advancing its product pipeline was highlighted by promising trial results for sokolitinib, a potential treatment for immune diseases and cancer. Analyst firms such as Oppenheimer have shown interest in the company’s progress, particularly in the atopic dermatitis trial, which is expected to present additional data in May 2025. The company also announced key milestones for 2025, including the initiation of a solid tumor trial and the presentation of atopic dermatitis data. CEO Richard Miller expressed optimism about the potential of sokolitinib, emphasizing its novel approach and the company’s strategic investments in clinical trials.
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