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On Wednesday, Jones Trading adjusted its outlook on Y-mAbs Therapeutics (NASDAQ:YMAB) shares by reducing the 12-month price target to $18.00 from the previous $23.00. Despite the lower target, the firm maintained a Buy rating on the stock. Currently trading at $4.84, the stock has experienced a significant decline of 70% over the past year, according to InvestingPro data. The revision came after the company’s financial guidance indicated that revenues for the fiscal year 2025 might not meet earlier expectations.
Y-mAbs Therapeutics, a biopharmaceutical company, had previously announced its fiscal year 2024 revenue of $87.7 million in February 2025, achieving a modest growth of 3.4% year-over-year with an impressive gross margin of 82.6%. This figure was in line with market anticipations. However, the company’s guidance for the fiscal year 2025 suggested revenues could be between $75 million and $90 million, which falls short of Jones Trading’s earlier projection of $102.6 million and the consensus estimate of $103.7 million. InvestingPro analysis indicates the company maintains strong financial health with a current ratio of 4.16, suggesting robust liquidity management.
The revised revenue guidance prompted a negative reaction in Y-mAbs’ stock performance, with the shares falling nearly 10% in the past week. In response to the new revenue outlook, Jones Trading analyst Justin Walsh stated that the firm had adjusted its estimates for DANYELZA, a product in Y-mAbs’ portfolio, to align with the fiscal year 2025 guidance. This reassessment led to the lowered price target, though it remains well above the current analyst consensus range of $7-26 per share.
Despite the reduction in the price target, Jones Trading expressed strong conviction in the long-term potential of Y-mAbs’ pipeline. The firm highlighted the company’s pretargeting radiopharmaceutical platform, which it believes can produce high-quality, differentiated assets. Jones Trading’s stance suggests confidence that investors who are patient enough to wait for the pipeline to mature could see significant returns.
In summary, Y-mAbs Therapeutics’ recent financial guidance has prompted Jones Trading to revise its price target downwards, but the firm remains optimistic about the company’s future prospects and continues to recommend the stock as a Buy to investors.
In other recent news, Y-mAbs Therapeutics has released its fourth-quarter and full-year 2024 results, showing a 13% year-over-year revenue increase to $26.5 million, aligning with analyst expectations. However, the company’s 2025 revenue guidance of $75-90 million fell short of the consensus estimate of $104 million. This has led to several analyst firms adjusting their price targets for the company. Morgan Stanley (NYSE:MS) reduced its price target from $11 to $7, maintaining an Underweight rating, citing challenges with the product Danyelza. Cantor Fitzgerald also lowered its target from $20 to $19, maintaining an Overweight rating, while BofA Securities cut its target to $12 from $14, keeping a Neutral rating. Clear Street reduced its target from $21 to $18 but continues to maintain a Buy rating, optimistic about the potential of Danyelza and the SADA platform. Additionally, Y-mAbs has entered into an Equity Distribution Agreement with Oppenheimer & Co. Inc., potentially offering up to $35 million of its common stock. This agreement provides the company with flexibility in financing its operations.
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