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On Tuesday, Mizuho (NYSE:MFG) Securities reaffirmed its confidence in ADMA Biologics (NASDAQ:ADMA), with analyst Anthony Petrone increasing the price target from $28.00 to $32.00. The firm sustained its Outperform rating on the stock, citing significant revenue potential for ASCENIV, ADMA’s immune globulin product. The company has demonstrated remarkable performance, with a 189% return over the past year and maintaining an "EXCELLENT" financial health rating according to InvestingPro analysis.
Petrone’s evaluation took into account the impact of new extended source plasma agreements on ASCENIV’s revenue potential. By analyzing collection volume and yield capture scenarios, even with conservative estimates for the capture rate of high-RSV titer at new external collection centers, the projections indicate a potential peak revenue for ASCENIV between $1.6 billion and $1.9 billion. This represents over a $1.5 billion annual increase compared to the current 12-month revenue of $426.45 million, which already shows impressive growth with a 65.15% year-over-year increase.
The analyst emphasized that the long-term duration source plasma contracts recently signed by ADMA have effectively resolved concerns regarding supply chain risks. The decreased discount rate in Mizuho’s discounted cash flow (DCF) analysis reflects the diminished supply side risks, leading to the new price target, which is currently the highest on Wall Street.
Petrone concluded by reiterating the Outperform rating and endorsing ADMA Biologics as a top selection within their coverage area. This positive outlook is based on the robust revenue potential and improved supply chain stability for ADMA’s product offerings. The company’s strong fundamentals are reflected in its positive earnings of $0.85 per share and healthy current ratio of 5.97. For deeper insights into ADMA’s valuation and growth prospects, including 12 additional ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, ADMA Biologics reported strong financial results for the fourth quarter of 2024, with earnings per share (EPS) of $0.46, significantly exceeding the forecast of $0.15. The company also surpassed revenue expectations, achieving $117.5 million against an anticipated $113.4 million, marking a 59% year-over-year growth for the quarter. For the full year, ADMA Biologics’ total revenue reached $426.5 million, representing a 65% increase compared to the previous year, with a gross profit margin improvement to 51.5% from 34.4% in 2023. Analysts from Cantor Fitzgerald have maintained an Overweight rating and a $25.00 price target on ADMA Biologics, citing the company’s history of conservative revenue guidance followed by upward revisions. The analysts also noted the potential benefits of an enhanced yield production process, which could increase intravenous immunoglobulin (IVIG) production by approximately 20%, pending regulatory approval. ADMA Biologics has set an ambitious revenue target for 2025, projecting over $490 million, supported by expanding plasma collection and targeting the primary immunodeficiency market. The company’s ongoing innovations in immunoglobulin therapy and strategic focus on expanding production capabilities contribute to its positive outlook.
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