Oppenheimer maintains Veru stock Outperform rating, $5 target

Published 27/01/2025, 20:40
Oppenheimer maintains Veru stock Outperform rating, $5 target

On Monday, Oppenheimer reiterated its Outperform rating and $5.00 price target for Veru Inc. (NASDAQ:VERU) shares, following the announcement of encouraging trial results. With the stock currently trading at $0.62, this represents a significant upside potential. According to InvestingPro data, the stock has shown strong momentum with a 24% gain in the past week. Veru reported initial data from its Phase 2b trial, indicating that the addition of daily oral enobosarm to weekly Wegovy significantly curbed lean mass loss by 71% compared to Wegovy alone, with a statistical significance of p=0.002.

The study also revealed that a smaller portion of subjects experienced a decline in stair climb power of 10% or more, with enobosarm reducing the number of affected individuals by 54.5% versus those only on Wegovy (p=0.005). Additionally, participants who took the combination treatment saw a 27% greater fat mass loss than those who took Wegovy alone, although this result was marginally significant with a p-value of 0.096.

The trial focused on overweight or obese individuals who were at least 60 years old, assessing the impact of enobosarm when added to Wegovy, a medication approved for weight management. The positive outcomes from this trial suggest potential benefits in preserving muscle mass and physical function during weight loss interventions in this demographic. Notably, the stock tends to move independently of market trends with a beta of -0.52, making it an interesting consideration for portfolio diversification.

Oppenheimer's continued support for Veru's stock is based on these promising findings, which could have implications for the treatment's advancement and potential market impact. The firm's $5.00 price target remains unchanged, reflecting confidence in the stock's prospects. With a market capitalization of $91.2 million and upcoming earnings report on February 5, investors seeking deeper insights can access comprehensive analysis through InvestingPro's detailed research reports, which cover over 1,400 US stocks including Veru Inc., a company actively engaged in the development of therapeutics for oncology and men's and women's health.

In other recent news, Veru Inc. has reported several key developments. The company's fiscal year ending September 2024 saw a net revenue of $16.9 million, a 4% growth year-over-year that surpassed analyst estimates. The net loss was $37.8 million, more favorable than the projected loss of $40.6 million. Additionally, Veru sold its FC2 Female Condom division to clients of Riva Ridge Capital Management LP, providing funds for the clinical development of enobosarm, the lead drug candidate.

Analysts from Oppenheimer and H.C. Wainwright have maintained positive ratings for Veru, with price targets ranging from $3 to $5. Veru's ongoing Phase 2b QUALITY trial of enobosarm is progressing, with top-line data expected in January 2025. The company also amended the forbearance and payment terms of its loan agreements with Onconetix, Inc., and added Loren Mark Katzovitz to its Board of Directors. These are recent developments in Veru's business operations and clinical trials.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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