Raymond James maintains Strong Buy on Liquidia stock, $29 target

On Tuesday, Raymond (NSE:RYMD) James reaffirmed their Strong Buy rating and a $29.00 price target for Liquidia Technologies (NASDAQ:LQDA) shares. The stock, currently trading at $15.35, has seen a 32% surge over the past six months despite a recent 10% pullback last week. According to InvestingPro data, analyst targets range from $13 to $36, with a strong consensus recommendation of 1.7 (where 1 is Strong Buy). The endorsement follows the announcement that the U.S. Food and Drug Administration (FDA) has granted final approval for Yutrepia, Liquidia’s treatment for pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD).

The approval news arrived concurrently with the expiration of the National Cancer Institute (NCI) exclusivity for Tyvaso DPI, and a day ahead of the FDA’s Prescription Drug User Fee Act (PDUFA) target date. Liquidia’s initial New Drug Application (NDA) for Yutrepia was submitted in January 2020. While the company maintains a healthy current ratio of 2.93 and operates with moderate debt levels, InvestingPro analysis indicates significant growth potential, with analysts forecasting substantial sales growth in the current year.

According to Raymond James, the drug label did not present any unexpected information. However, they highlighted the potential for Liquidia to later amend this label with clinical data from the ASCENT study, which has shown favorable tolerability for PH-ILD patients at doses higher than those targeted by Tyvaso DPI.

To address the commercialization strategy for Yutrepia, Liquidia is scheduled to conduct a webcast on Tuesday, May 27, before the market opens. The company’s management has previously indicated that they could distribute the product to the market within 2-3 weeks following the final approval. For deeper insights into Liquidia’s growth trajectory and comprehensive financial analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.

In other recent news, Liquidia Technologies has been the focus of several analyst reports following the presentation of new data at the American Thoracic Society conference. The company showcased encouraging results from the ASCENT trial, highlighting Yutrepia’s safety, tolerability, and potential efficacy in treating pulmonary hypertension associated with interstitial lung disease (PH-ILD). BTIG reaffirmed its Buy rating with a $29 price target, emphasizing the promising therapeutic potential of Yutrepia. Similarly, Scotiabank (TSX:BNS) maintained its Sector Outperform rating and a $36 target, citing the new trial data as reinforcing Yutrepia’s favorable profile. Needham also reiterated a Buy rating with a $25 target, noting Yutrepia’s potential to address unmet needs in the PAH and PH-ILD markets. Raymond James maintained a Strong Buy rating and a $29 target, expressing optimism about Yutrepia’s market value, particularly in PH-ILD. The analysts collectively highlight the potential for Yutrepia to become a significant player in its target markets, with the Prescription Drug User Fee Act (PDUFA) decision set for May 24, 2025. Liquidia’s management is preparing for the commercialization of Yutrepia, which has already received tentative FDA approval for its intended indications.

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