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On Monday, Leerink Partners adjusted its price target for Structure Therapeutics (NASDAQ:GPCR) shares, reducing it to $60 from the previous target of $93, while maintaining an Outperform rating on the stock. The company’s shares currently trade at $23.75, with analyst targets ranging from $50 to $118. According to InvestingPro data, the stock has shown resilience with a nearly 13% gain over the past week, despite being down about 42% over the past year. The revision comes after the analyst, David Risinger, recalibrated long-term market share expectations for the company’s leading drug candidate, aleniglipron, previously known as oral GLP-1 GSBR-1290.
Risinger noted that the decision to lower the price target was based on the anticipation of increased competition in the market, which led to a decrease in the projected market share for aleniglipron from 10% to 7.5% by the year 2035. Despite this, Leerink Partners sees continued potential in Structure Therapeutics’ pipeline. With a market capitalization of $1.36 billion and an overall Financial Health score of "FAIR" according to InvestingPro, the company maintains a solid foundation for future growth.
In terms of financial projections, Leerink Partners has scaled back its estimate of 2035 risk-adjusted global sales for aleniglipron from $5.5 billion to $4.1 billion, which translates to a decrease in projected royalties for Structure Therapeutics from $1.4 billion to $1.0 billion. The firm continues to expect that Structure Therapeutics will out-license aleniglipron and estimates a royalty rate of 25% on global net sales.
Regarding the company’s fourth-quarter results announced on February 27, Risinger mentioned that the operating expenses of $47 million were consistent with Leerink Partners’ expectations. Structure Therapeutics reported a substantial cash balance of $883.5 million as of December 31, 2024. This strong cash position is reflected in InvestingPro’s analysis, which highlights that the company holds more cash than debt and maintains a healthy current ratio of 24.74, ensuring ample liquidity for its operations. For deeper insights into Structure Therapeutics’ financial health and detailed analysis, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro. Management believes these funds will be sufficient to support operations through at least 2027, which includes preparing for Phase 3 readiness of aleniglipron, but excludes costs for Phase 3 registration studies.
Investors are also looking forward to the results from the Phase 2 trial of aleniglipron, which are expected to be released by the end of 2025. The outcome of these trials could be a pivotal moment for the company as it seeks to advance its lead program through the clinical development process.
In other recent news, Structure Therapeutics has been at the center of several notable developments. The company concluded 2024 with a significant cash reserve of $884 million, which is expected to sustain operations through at least 2027, excluding funds for its Phase 3 obesity studies. JMP Securities adjusted its price target for Structure Therapeutics to $87, maintaining a Market Outperform rating, while Stifel initiated coverage with a ’Buy’ rating and a $50 price target, reflecting optimism about the company’s oral small molecule approach in the metabolic disease sector. Additionally, H.C. Wainwright reaffirmed its Buy rating and set a price target of $80, citing the promising expansion of Structure’s drug pipeline with ACCG-2671, an amylin agonist. Piper Sandler’s report highlighted Structure Therapeutics among companies with potential catalysts in 2025, particularly noting the impact of GSBR-1290 in the obesity market. Recent results from Novo Nordisk (NYSE:NVO)’s obesity drug trials have shifted investor focus toward Structure Therapeutics and its competitors, with Structure’s stock experiencing gains. These developments underscore the company’s strategic positioning and potential impact in the competitive landscape of obesity treatments.
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