Maxim Group cuts Azitra stock price target to $2 from $3, retains Buy rating

Published 26/02/2025, 18:36
Maxim Group cuts Azitra stock price target to $2 from $3, retains Buy rating

On Wednesday, Maxim Group adjusted its financial outlook for Azitra, Inc. (NYSE: AZTR), reducing the price target to $2.00 from the previous $3.00. Despite the lower price target, the firm maintained a Buy rating on the company’s stock. This decision follows Azitra’s recent financial disclosures. The stock, which has declined over 95% in the past year, currently trades at $0.37. According to InvestingPro data, analyst targets for the stock range from $2.00 to $4.00.

Azitra, which is active in the biotechnology sector, filed its annual report on Tuesday, revealing a net loss of $9.0 million for the fourth quarter of 2024. The report also indicated that the company concluded the period with $4.6 million in cash. These figures are crucial for investors as they evaluate the company’s financial health and future prospects. InvestingPro analysis shows the company maintains a current ratio of 3.8, indicating strong short-term liquidity, though it’s quickly burning through available cash.

After the close of the quarter, Azitra successfully completed two equity financings, securing approximately $2.4 million in gross proceeds. These additional funds are intended to support the company’s operations and development activities going forward.

The research firm’s analysis suggests that the combined financial resources from the quarter-end and the subsequent equity financings should provide Azitra with enough capital to continue its operations into the second half of 2025. This projection of financial sustainability is a key factor in the firm’s ongoing support of the stock with a Buy rating.

Maxim Group’s revised price target and commentary provide investors with updated guidance on the value and potential of Azitra’s shares. The firm’s statements reflect its assessment of the company’s financial position and its ability to fund its business activities in the near to medium term.

In other recent news, Azitra, Inc. has made several strategic financial moves. The company completed a registered direct offering of common stock, generating approximately $930,000 in gross proceeds. This follows a separate public offering, expected to close soon, which aims to raise around $1.5 million through the sale of nearly 4.9 million shares at $0.30 per share. Azitra has indicated that the proceeds from these offerings will be allocated for general corporate purposes and working capital.

Additionally, Azitra entered into an agreement to issue new warrants alongside a stock sale, allowing investors to purchase up to 2,245,967 shares and participate in future financings for the next two years. Maxim Group LLC is serving as the placement agent for these offerings under an effective shelf registration statement. Azitra’s ongoing developments include ATR-12, a treatment for Netherton syndrome in a Phase 1b clinical trial, and ATR-04, targeting EGFR inhibitor-associated rash, which has received FDA Fast Track designation. These financial maneuvers are part of Azitra’s broader strategy to strengthen its financial position and support its research and development efforts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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