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On Tuesday, H.C. Wainwright reaffirmed its confidence in Niagen Bioscience (NASDAQ:NAGE), maintaining a Buy rating and a price target of $11.00. Currently trading at $5.62, the stock has experienced significant volatility, with InvestingPro data showing a 71.9% surge over the past six months despite an 18.2% decline in the past week. The firm's analysts highlighted the company's resilience in the face of global tariffs recently enacted, which could have impacted the cost of manufacturing its products.
Niagen Bioscience, known for its patented nicotinamide riboside (NR) ingredient and TRU NIAGEN brand, has assured stakeholders that its production processes remain sturdy. The company's strong financial position, with a current ratio of 3.57 and minimal debt-to-equity ratio of 0.06 as reported by InvestingPro, supports its manufacturing strategy. The company's U.S.-based manufacturing partner, W.R. Grace—a part of Standard Industries Holdings—ensures that Niagen is rigorously tested, encapsulated, bottled, and packaged domestically using premium materials. This strategy has effectively shielded the company from the global price volatility typically associated with international sourcing.
The analysts pointed out that the majority of vitamins, including NR, are currently exempt from the new tariffs imposed by the U.S. government. This exemption is crucial for Niagen Bioscience as it allows the company to continue its international operations without facing disruptions. In 2024, international sales accounted for roughly 24% of the company's revenue, with more than 12% coming from its partner in Hong Kong, a duty-free market not affected by the tariffs.
H.C. Wainwright's outlook for Niagen Bioscience is optimistic, particularly for its core NR franchise. With revenue growth of 19.2% in the last twelve months and a healthy gross profit margin of 61.8%, the company shows strong operational execution. The firm anticipates near-term tailwinds for the company and sees potential for NR and its analogs to expand into markets beyond nutritional supplements and ingredients, potentially entering the realm of prescription pharmaceuticals. For deeper insights into NAGE's growth potential and comprehensive analysis, investors can access detailed financial metrics and 13 additional ProTips through InvestingPro's extensive research platform.
In their statement, H.C. Wainwright analysts concluded, "From our vantage point, tailwinds remain likely near-term for the company's core NR franchise and the potential for this molecule and its analogs to be explored in areas beyond the nutritional supplement and ingredient markets, including the domain of prescription pharmaceuticals (Rx products). We reiterate our Buy rating and 12-month price target of $11."
In other recent news, Niagen Bioscience reported a 37% increase in total net sales year-over-year, with TRU NIAGEN contributing significantly to this growth. The company's revenue reached $29.1 million, surpassing analyst forecasts of $28 million, and earnings per share were reported at $0.09, exceeding the expected $0.04 per share. H.C. Wainwright maintained a Buy rating on Niagen Bioscience, setting a price target of $11.00, reflecting optimism about the company's growth potential. The firm noted the company's recent rebranding from ChromaDex Corp. as a strategic move to align more closely with its flagship product, Niagen. Additionally, Niagen Bioscience expanded its intellectual property portfolio with a new U.S. patent for various nicotinamide riboside salts, strengthening its market position. This patent is expected to provide exclusive rights until 2034, enhancing the company's competitive edge. The company assured investors of its stability amid global tariffs, highlighting its U.S.-based supply chain for the Niagen ingredient. These developments underscore Niagen Bioscience's commitment to innovation and market leadership in the NAD+ supplement industry.
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