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On Monday, Raymond (NSE:RYMD) James analyst Dane Leone reiterated a Strong Buy rating and a $19.00 price target on Ocular Therapeutix (NASDAQ:OCUL) following the company’s fourth-quarter 2024 earnings report. According to InvestingPro data, analyst consensus remains bullish with price targets ranging from $14 to $22, suggesting significant upside potential from current levels. Ocular Therapeutix announced total revenue of $17.1 million, which fell slightly short of Raymond James’ estimate of $17.8 million. The company’s diluted earnings per share (EPS) were reported at $(0.29), compared to the projected $(0.26).
The company’s revenue was primarily driven by its product Dextenza, which saw an 11% quarter-over-quarter and a 16% year-over-year increase. Ocular Therapeutix ended the fiscal year 2024 with approximately $392 million in cash and equivalents, which is expected to fund operations into the year 2028. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 13.01 and holds more cash than debt on its balance sheet, though it’s worth noting the company is not yet profitable.
A key update from the earnings call was the change in the SOL-1 trial design, which received FDA approval for an amendment to the Special Protocol Assessment (SPA) agreement. The trial will now include additional redosing at 52 and 76 weeks. The primary endpoint report, initially expected in the fourth quarter of 2025, is now scheduled for the first quarter of 2026.
Furthermore, the SOL-R trial will be reduced to 555 patients from the initially planned 825, which is anticipated to accelerate the trial timeline. Despite the delay in reporting the SOL-1 topline results, Raymond James views the recent updates positively, suggesting they could lead to an earlier New Drug Application (NDA) submission and a more robust product label offering dosing every six to twelve months.
Leone expressed confidence in the drug product profile of Axpaxli™ compared to other sustained release Tyrosine Kinase Inhibitor (TKI) platforms, and the strategic design of the SOL-1 and SOL-R studies. This confidence underpins the firm’s decision to maintain the Strong Buy rating and $19.00 price target for Ocular Therapeutix stock. For deeper insights into OCUL’s financial health, valuation metrics, and additional analyst perspectives, explore the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Ocular Therapeutix reported its fourth-quarter earnings, revealing a loss of $0.29 per share, which was wider than the $0.25 loss analysts had projected. The company’s revenue for the quarter was $17.08 million, slightly below the consensus estimate of $17.21 million, but it marked a 15.4% increase from the previous year’s $14.8 million for the same period. For the full year 2024, Ocular Therapeutix reported a total revenue of $63.7 million, up 9% from $58.4 million in 2023, driven by increased sales of its DEXTENZA product. Despite the earnings miss, the company emphasized progress in its clinical programs, particularly for its AXPAXLI treatment for wet age-related macular degeneration.
BofA Securities recently adjusted its outlook on Ocular Therapeutix, lowering the price target to $17 from $18 but maintaining a Buy rating. The adjustment follows the company’s amendment to the Special Protocol Assessment (SPA) for the SOL-1 trial, which includes additional re-dosing and is expected to provide insights into the long-term durability of Axpaxli. This amendment is projected to delay the topline readout to the first quarter of 2026 but is seen as a strategic move to enhance understanding and optimize the drug’s path to market. The firm maintains a positive view on Axpaxli’s potential to reduce the treatment burden for patients with retinal diseases. Ocular Therapeutix ended 2024 with a cash balance of $392.1 million, which it anticipates will fund operations into 2028.
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