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Tuesday, Mizuho (NYSE:MFG) reiterated its Outperform rating on EyePoint Pharmaceuticals, Inc. (NASDAQ:EYPT) with a steady price target of $30.00, following the company’s fourth-quarter results released earlier in March. Currently trading at $6.55, the stock sits well below the broader analyst consensus target range of $18-68, according to InvestingPro data. The firm’s assessment remains positive, with the pace of enrollment in EyePoint’s Phase 3 LUGANO and LUCIA studies for their lead asset, Duravyu, in the treatment of wet Age-related Macular Degeneration (wAMD), exceeding expectations.
EyePoint Pharmaceuticals’ recent update on their clinical trials has been a focal point for Mizuho, as the studies for Duravyu are seen as critical to the company’s success. The analyst notes that the trials appear significantly de-risked, which, along with the company’s financial position that provides a cash runway into 2027, bolsters confidence in Duravyu’s potential. InvestingPro analysis shows the company holds more cash than debt on its balance sheet, though it’s currently burning through cash at a notable rate. The treatment aims to address the high unmet medical need in the management of retinal diseases by reducing the treatment burden.
The firm’s unchanged price target comes after incorporating the fourth-quarter results into their financial model, which included several adjustments. Despite these changes, the positive outlook for EyePoint Pharmaceuticals has been maintained, with the analyst citing the company’s undervalued stock as an opportunity for positive risk/reward. This view is supported by InvestingPro’s Fair Value assessment, which suggests the stock is currently undervalued. Get access to 10+ additional ProTips and comprehensive financial analysis with an InvestingPro subscription.
The report emphasizes EyePoint’s strong financial standing, which is expected to support the company’s operations and clinical trials well into the future. With a current ratio of 7.81 and liquid assets exceeding short-term obligations, the company maintains solid financial flexibility. This financial stability is coupled with the anticipation of Duravyu becoming a potentially best-in-class product that could revolutionize treatment for patients with wAMD.
In conclusion, Mizuho’s analysis supports a continued Outperform rating for EyePoint Pharmaceuticals. The firm expresses continued confidence in the company’s lead asset, Duravyu, and its ability to meet a significant unmet medical need in the treatment of retinal diseases. The price target remains set at $30.00, reflecting a stable and positive outlook for the company’s stock.
In other recent news, EyePoint Pharmaceuticals reported its fourth-quarter 2024 financial results, showing a mixed performance with revenue exceeding expectations but earnings per share (EPS) falling short. The company posted a net revenue of $11.6 million, surpassing the forecast of $10.61 million, while the EPS of -$0.64 missed the expected -$0.50. For the full year, EyePoint Pharmaceuticals achieved a revenue of $43.3 million but faced a net loss of $130.9 million, or $2.32 per share. H.C. Wainwright maintained a Buy rating for EyePoint Pharmaceuticals with a $22.00 price target, reflecting confidence in the company’s prospects despite the larger-than-anticipated net loss for the quarter. The firm highlighted the ongoing Phase 3 trials of the company’s DURAVYU treatment for wet Age-related Macular Degeneration (AMD (NASDAQ:AMD)), which are progressing well with enrollment rates surpassing expectations. EyePoint Pharmaceuticals has extended its cash reserves to 2027, reducing financial uncertainty and allowing the company to focus on its strategic initiatives without accessing equity markets in 2025. The company remains optimistic about the potential of DURAVYU, with enrollment completion for its Phase 3 trials anticipated in the second half of 2025 and top-line results expected in 2026.
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