Oppenheimer cuts CATX stock price target to $15, maintains Outperform

On Tuesday, Oppenheimer analysts adjusted their outlook on Perspective Therapeutics Inc (NYSE:CATX), reducing the price target to $15 from the previous $16 while sustaining an Outperform rating on the stock. According to InvestingPro data, despite the stock’s 85% decline over the past year, analysts maintain a strong bullish consensus with price targets ranging from $6 to $21. The revision follows the company’s first-quarter results and a business update provided after the market closed on Monday. Perspective Therapeutics has been actively enrolling patients in three clinical programs targeting various cancers, including neuroendocrine tumors (NETs), melanoma, and familial adenomatous polyposis (FAP) along with other solid tumors.

The company showcased their ongoing research at the American Society of Clinical Oncology (ASCO) with posters for their NETs and melanoma treatments. However, Perspective Therapeutics did not release any new information regarding their discussions with the Food and Drug Administration (FDA) about the plan for Cohort 3 in their VMT-α-NET program. InvestingPro analysis shows the company holds more cash than debt on its balance sheet, though it’s currently burning through cash rapidly as it advances its clinical programs.

Perspective Therapeutics recently announced the first patient dosing of their FAP-targeting candidate, PSV359, in April, and efforts are underway to widen the trial. The company ended the first quarter with $212 million in cash, which is expected to fund operations into late 2026. The analysts at Oppenheimer have updated their financial model for Perspective Therapeutics to reflect the actual first-quarter results, reiterating the Outperform rating but lowering the price target to reflect the updated projections. InvestingPro data reveals the company maintains strong liquidity with a current ratio of 17.02, though it’s currently not profitable. Subscribers can access 12 additional ProTips and a comprehensive analysis of CATX’s financial health in the Pro Research Report, available exclusively on the platform.

In other recent news, Perspective Therapeutics Inc reported its fourth-quarter 2024 earnings, revealing a cash reserve of approximately $227 million, which is expected to fund operations until late 2026. Truist Securities revised its price target for the company to $10, down from $21, but maintained a Buy rating. This adjustment follows updated timelines for commercial launches and changes in the company’s clinical program projections. Oppenheimer also maintained its Outperform rating with a $16 price target, citing the company’s financial stability and progress in its Pb212-based therapeutic programs as key factors. The expansion of the VMT-α-NET trial cohort to 30 patients marks a significant development in the company’s clinical trials. Meanwhile, Scotiabank (TSX:BNS) initiated coverage of Perspective Therapeutics with a Sector Outperform rating and a $15 price target. Scotiabank highlighted the potential of the company’s pipeline, including its melanoma and FAP-alpha programs, as promising areas for growth. These recent developments underscore the continued interest and varying perspectives from analysts regarding Perspective Therapeutics’ future.

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