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On Wednesday, Needham analysts increased the price target for Cidara Therapeutics (NASDAQ:CDTX) stock to $36 from the previous $35, while maintaining a Buy rating. This aligns with the broader analyst consensus, as revealed by InvestingPro data showing targets ranging from $35 to $50. The adjustment comes as the firm anticipates the upcoming results of Cidara’s Phase 2b flu trial for its CD388 product, which is scheduled to release topline data later this month.
The analysts expressed optimism regarding the trial based on earlier Phase 2a data and recent updates to the Phase 2b statistical analysis plan. They believe these factors could lead to a significant event for the stock, which has already demonstrated strong momentum with an 89% return over the past year. While the company maintains a healthy balance sheet with more cash than debt, InvestingPro analysis indicates rapid cash utilization requires careful monitoring.
In their analysis, the Needham team assigns a 40% probability of success to the trial. They predict that a statistically significant risk reduction in the range of 45-55% could result in a 45% increase in the stock’s current valuation.
The analysts made minor adjustments to their model, reflecting their positive outlook on the potential trial outcomes. This led to the revised price target, which suggests a range of $31-36 for Cidara shares.
In other recent news, Cidara Therapeutics has been receiving attention due to developments surrounding its influenza prevention drug, CD388. JMP Securities has maintained its Market Outperform rating for Cidara, keeping the price target at $47.00, driven by optimism over the upcoming results from the Phase 2b trial of CD388. This trial, known as NAVIGATE, evaluates the drug as a once-per-season prophylactic antiviral, with results expected soon. The company recently reported a strong cash position of $174 million, which supports its ongoing clinical trials and future plans. JMP Securities highlighted CD388’s potential market opportunity, particularly among high-risk populations, which could exceed $5 billion in the U.S. market alone.
Cidara has also scheduled a virtual Research and Development day to discuss flu epidemiology, trial updates, and the commercial prospects of CD388. Analysts have expressed confidence in the trial’s outcome, noting the drug’s high potency and potential to last the entire flu season. The anticipation of the Phase 2b trial results is seen as a possible catalyst for the company’s stock performance. Additionally, Cidara is exploring collaborations with organizations like BARDA for H5N1 prevention, indicating strategic moves to expand its target patient population. These developments underscore Cidara’s focus on addressing unmet needs in flu prevention, particularly for high-risk groups.
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