Morgan Stanley cuts YMAB stock price target to $7 from $11

Published 04/03/2025, 23:26
Morgan Stanley cuts YMAB stock price target to $7 from $11

On Tuesday, Morgan Stanley (NYSE:MS) analysts adjusted their view on Y-mAbs Therapeutics stock, reducing the price target to $7.00 from the previous $11.00, while maintaining an Underweight rating. The revised price target comes in response to the company’s 2025 sales guidance, which suggests a year-over-year decline, as its product Danyelza encounters ongoing challenges in the market. The company, currently valued at $232 million, maintains impressive gross profit margins of 89% despite these challenges. According to InvestingPro analysis, Y-mAbs appears undervalued at current levels.

The analysts noted that while Y-mAbs Therapeutics had previously disclosed its 2024 revenues, the outlook for the following year underwhelmed expectations. The company’s guidance for 2025 indicates a potential decrease in sales, reflecting the difficulties faced by Danyelza, a key product in Y-mAbs’s portfolio.

Despite these challenges, the firm highlighted that Y-mAbs is proceeding with its strategic plans. The company’s business realignment, which was recently announced, is reportedly progressing as intended. Moreover, an update on the strategy for the SADA program, another significant aspect of Y-mAbs’s operations, is expected to be shared in the second quarter of 2025. The stock has experienced significant pressure, down 34% year-to-date, though InvestingPro data shows the company maintains a healthy current ratio of 3.92, indicating strong short-term liquidity.

Morgan Stanley’s analysts have reiterated their Underweight rating on the stock, signaling a cautious stance on Y-mAbs Therapeutics in light of the latest sales guidance and market performance of its products. The Underweight rating indicates that the analysts believe the stock might underperform the sector or the overall market in the near future.

The price target adjustment reflects Morgan Stanley’s analysis of Y-mAbs’s financial outlook and its ability to navigate the competitive landscape. As the company continues to implement its business realignment and prepares to update its SADA program strategy, investors will be watching closely to see how these efforts might impact its financial performance and stock valuation. For deeper insights into Y-mAbs’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.

In other recent news, Y-mAbs Therapeutics reported its fourth-quarter 2024 earnings, missing both earnings per share (EPS) and revenue forecasts. The company posted an EPS of -0.15, falling short of the expected -0.1165, and reported revenue of $24.5 million, below the anticipated $26.99 million. This earnings miss follows the company’s guidance for 2025, projecting revenues between $75 million and $90 million, a range that falls short of the consensus estimate of $104 million. Additionally, Y-mAbs has entered into an Equity Distribution Agreement with Oppenheimer & Co. Inc., potentially offering up to $35 million of its common stock, providing the company with flexibility in financing its operations.

Analyst firms have reacted to these developments with adjustments to their price targets for Y-mAbs. Cantor Fitzgerald lowered its price target from $20 to $19 while maintaining an Overweight rating, citing a more conservative outlook on the market ramp-up of Danyelza, Y-mAbs’ neuroblastoma treatment. BofA Securities also decreased its price target from $14 to $12, maintaining a Neutral rating, and noted the slower than expected launch of Danyelza. Clear Street reduced its price target from $21 to $18 but kept a Buy rating, expressing optimism about the potential profitability of Danyelza and the company’s SADA platform. These recent developments highlight ongoing challenges and strategic adjustments for Y-mAbs Therapeutics as it navigates the competitive landscape and seeks to bolster its financial position.

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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