Leerink Partners raises Xeris Pharmaceuticals stock price target

Published 05/06/2025, 10:32
Leerink Partners raises Xeris Pharmaceuticals stock price target

On Thursday, Leerink Partners analysts raised the price target for Xeris Pharmaceuticals stock (NASDAQ:XERS) to $7.00 from a previous target of $6.00, while maintaining an Outperform rating. The adjustment follows Xeris’ Analyst & Investor Day, which took place on Tuesday, where the company shared positive updates about its lead commercial product, Recorlev, and its pipeline asset, XP-8121.

During the event, Xeris management outlined a strategic vision for Recorlev, targeting broader adoption in treating endogenous Cushing’s syndrome. The company plans to expand its sales force and make incremental investments in Recorlev’s commercial infrastructure. Xeris also reiterated its fiscal year 2025 revenue guidance of $260-275 million, expecting to remain EBITDA positive. This projection represents significant growth from current revenue of $222.55M, with the company maintaining a strong gross profit margin of 82.21%. For deeper insights into Xeris’ financial health and growth potential, investors can access comprehensive analysis through InvestingPro’s detailed research reports.

The event featured insights from endocrinologist key opinion leaders and highlighted the Phase 3 trial design plans for XP-8121, a once-weekly subcutaneous levothyroxine for hypothyroidism, set to begin in 2026. Xeris provided a longer-term revenue outlook, projecting around $750 million in total revenue by 2030 and over $1 billion for Recorlev alone by 2035. With a current market capitalization of $712.69M and a "GOOD" Financial Health Score from InvestingPro, the company appears positioned for potential growth.

While the company has ambitious goals, some investors may seek more detailed information on the path for Recorlev to become a blockbuster product. Xeris aims to balance investment in Recorlev’s launch with the development of XP-8121, which could gain more investor appreciation as the Phase 3 initiation approaches.

Leerink Partners expressed a positive outlook on Xeris’ plans to enhance its sales force for Recorlev’s launch and drive value for its pipeline, leading to the updated price target.

In other recent news, Xeris Biopharma Holdings reported a significant 48% increase in first-quarter 2025 revenue, totaling $60.1 million, which surpassed analysts’ expectations of $57.88 million. Despite this revenue success, the company posted an earnings per share (EPS) of -$0.06, missing the forecast by $0.01. Xeris raised its full-year revenue guidance to a range of $255 to $260 million, reflecting a 32% growth expectation. Additionally, the company outlined ambitious long-term revenue projections, aiming for $750 million by 2030 and $1 billion for its Recorlev product by 2035. At their recent Analyst and Investor Day, Xeris emphasized its strong financial health, highlighting its ability to self-fund future growth initiatives. The company also conducted its annual stockholder meeting, where three directors were elected and Ernst & Young LLP was ratified as the independent auditor for 2025. Moreover, Xeris is advancing its product pipeline, including the development of XP-8121 for hypothyroidism, which was discussed at the recent investor event.

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