Noble Capital sets Nutriband stock Outperform with $13 target

Published 22/01/2025, 16:02
Noble Capital sets Nutriband stock Outperform with $13 target

On Wednesday, Noble Capital initiated coverage on Nutriband (NASDAQ:NTRB) with an Outperform rating and a price target of $13.00, representing significant upside from the current price of $6.92. The stock has shown strong momentum, gaining nearly 23% in the past week according to InvestingPro data. The firm's analysts are optimistic about the company's future, particularly regarding its upcoming Phase 1 clinical trial. The trial is expected to demonstrate sufficient abuse deterrence, which could allow Nutriband to file a New Drug Application using the 505(b)(2) regulatory pathway in the second half of 2025.

The analysts at Noble Capital have factored in a standard 10-month review period for the New Drug Application, though they note that a Priority Review could potentially reduce the timeline to 6 months. Should the review process adhere to their expectations, they anticipate that Nutriband could receive drug approval in the second half of 2026. InvestingPro data shows the company maintains a strong balance sheet with more cash than debt and a healthy current ratio of 4.96x.

The valuation set by Noble Capital is based on Nutriband's projected earnings per share (EPS) of $1.45 for the fiscal year 2027. This projection has been discounted at a rate of 30% per year. By applying a multiple of 15 times the forecasted EPS, the firm has arrived at the $13 per share price target.

Noble Capital's analysis hinges on the successful outcome of Nutriband's clinical trial and subsequent regulatory processes. The firm's positive outlook reflects their confidence in Nutriband's potential to navigate the drug approval pathway effectively and to achieve significant earnings growth by FY2027. While currently unprofitable with a -$0.69 EPS, analysts tracked by InvestingPro forecast 92% revenue growth for FY2025. Get access to 8 additional ProTips and comprehensive financial analysis with InvestingPro.

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