Oppenheimer initiates Palvella Therapeutics stock coverage with Outperform rating

Published 09/09/2025, 11:56
Oppenheimer initiates Palvella Therapeutics stock coverage with Outperform rating

Investing.com - Oppenheimer initiated coverage on Palvella Therapeutics (NASDAQ:PVLA) with an Outperform rating and an $85.00 price target on Tuesday. The stock, currently trading at $55.02, has shown remarkable momentum with a 358.5% gain year-to-date and is trading near its 52-week high of $58.22.

The research firm highlighted upcoming clinical readouts over the next six months in indications that represent a $4 billion total addressable market (TAM).

Oppenheimer expressed confidence in Qtorin rapamycin’s pivotal trial with topline results expected in the first quarter of 2026 for a rare congenital skin condition, citing strong Phase 2 data.

The firm noted that Qtorin rapamycin optimizes topical delivery of an mTOR inhibitor, making it suitable for treating skin lesions driven by overactive mTOR that currently lack effective treatment options.

Oppenheimer projects more than $1 billion in peak sales across microcystic lymphatic and cutaneous venous malformations (MLMs and CVMs), and believes the current share valuation underestimates the market opportunity. While the company maintains strong liquidity with a current ratio of 7.67, InvestingPro analysis reveals additional key metrics and insights available in the comprehensive Pro Research Report.

In other recent news, Palvella Therapeutics reported its second-quarter earnings for 2025, highlighting a strong cash position but also high operating expenses. Despite the financial challenges, analysts have shown confidence in the company’s future prospects. Canaccord Genuity raised its price target for Palvella Therapeutics from $52 to $66, maintaining a Buy rating. Similarly, H.C. Wainwright increased its price target significantly from $38 to $75, also maintaining a Buy rating. These upgrades are influenced by the company’s successful enrollment in its Phase 3 SELVA trial, which exceeded its target by over 25%, enrolling 51 patients. The trial is set to deliver top-line results in the first quarter of 2026. Investors may find reassurance in the analysts’ positive outlook despite the company’s current financial hurdles.

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