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On Monday, Oppenheimer analysts downgraded shares of Liquidia Technologies (NASDAQ:LQDA) from Perform to Underperform, setting a price target of $13.00. The stock, which has surged nearly 20% in the past week and is trading near its 52-week high of $19.41, appears overvalued according to InvestingPro analysis. The downgrade comes despite a clear path to approval for Liquidia’s YUTREPIA in the treatment of Pulmonary Arterial Hypertension (PAH) and Pulmonary Hypertension in patients with Interstitial Lung Disease (PH-ILD), expected by the 5/24/2025 PDUFA date. While the company maintains a healthy liquidity position with a current ratio of 2.93, its negative EBITDA of $126.36 million highlights ongoing profitability challenges.
The analysts believe that the market launch of YUTREPIA may fall short of expectations. They cite a lack of significant differentiation from TYVASO DPI, a competing product by United Therapeutics (NASDAQ:UTHR), which holds an Outperform rating. Prescribers reportedly show little enthusiasm for switching existing patients to YUTREPIA, considering it only for an estimated 10% of patients who do not tolerate TYVASO DPI. Notably, other analysts maintain a more optimistic outlook, with price targets ranging from $20 to $36, suggesting significant potential upside. For deeper insights into Liquidia’s market position and growth prospects, InvestingPro subscribers can access the comprehensive Pro Research Report, which includes detailed competitive analysis and growth projections.
Oppenheimer’s assessment also points to several commercial and competitive challenges that Liquidia may face. These challenges could impact the company’s ability to reach projected sales of $153 million for PAH and $256 million for PH-ILD by 2030. The analysts suggest that Liquidia may need to secure additional capital to successfully launch YUTREPIA into a market currently dominated by United Therapeutics.
The revised price target reflects Oppenheimer’s conservative stance on Liquidia’s stock, taking into account the anticipated hurdles in the commercialization of YUTREPIA. The firm’s valuation of Liquidia’s shares at $13 indicates a cautious outlook for the company’s performance in the coming years.
In other recent news, Liquidia Technologies reported a wider net loss for the first quarter of 2025, despite a slight revenue increase. The company’s revenue rose by $100,000 from the previous year, reaching $3.1 million, but earnings per share (EPS) fell short of expectations, coming in at -$0.45 compared to the forecasted -$0.40. Research and development expenses decreased by 31%, while general and administrative expenses rose by 48%. The company is focusing on the anticipated approval and launch of its new product, Eutrebia, with a PDUFA date set for May 24, 2025. Additionally, Raymond (NSE:RYMD) James analyst Ryan Deschner maintained a Strong Buy rating on Liquidia shares, with a price target of $29.00, highlighting ongoing patent litigation related to the company’s Yutrepia product. Deschner noted that the lawsuit does not aim to prevent FDA approval but seeks to delay commercialization post-approval. Liquidia has also filed a separate patent infringement lawsuit against United Therapeutics, reflecting the complex legal landscape in which the company operates.
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