Ocular Therapeutix stock price target raised to $29 by Citizens JMP

Published 01/10/2025, 10:22
Ocular Therapeutix stock price target raised to $29 by Citizens JMP

Investing.com - Citizens JMP raised its price target on Ocular Therapeutix (NASDAQ:OCUL) to $29.00 from $20.00 on Wednesday, while maintaining a Market Outperform rating on the stock. The new target represents significant upside from the current price of $11.69, with InvestingPro data showing the stock has already gained nearly 79% over the past six months.

The research firm expressed continued confidence in the management’s execution and innovation capabilities, particularly highlighting Axpaxli’s durability advantages in wet AMD and NPDR/DME treatment areas. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 10.09 and holds more cash than debt on its balance sheet, providing financial flexibility for continued innovation.

Citizens JMP noted the Special Protocol Assessment (SPA) agreement for the HELIOS-2 trial provides investors with increased confidence in the novel ordinal DRSS change primary endpoint, which enables smaller, shorter, and less expensive trials while assessing clinically relevant endpoints.

The firm has incorporated the NPDR/DME opportunity into its valuation model, citing the high and growing prevalence of the condition, though acknowledging that patient treatment patterns could change with Axpaxli’s potential annual treatment option.

Citizens JMP also highlighted the upcoming Phase 3 SOL-1 data expected in the first quarter of 2026, where success is largely anticipated and could help derisk the Phase 3 SOL-R non-inferiority trial scheduled to report results in the first half of 2027.

In other recent news, Ocular Therapeutix announced the pricing of a $475 million underwritten offering of 37,909,018 shares of its common stock at $12.53 per share. The offering is set to close around October 1, 2025, with BofA Securities, TD Cowen, and Piper Sandler & Co. as joint book-running managers. The company is also progressing with its Phase 3 clinical trials for AXPAXLI in treating wet age-related macular degeneration, maintaining over 95% patient retention and no new safety concerns. Topline results from the SOL-1 trial are expected in the first quarter of 2026. Additionally, Ocular Therapeutix has secured a Special Protocol Assessment agreement from the FDA for a clinical trial of AXPAXLI in non-proliferative diabetic retinopathy. Chardan Capital Markets has initiated coverage on Ocular Therapeutix with a Buy rating, citing the potential of its AXPAXLI product. These developments highlight the company’s ongoing efforts in advancing its treatment pipeline.

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