Raymond James reiterates strong buy on ARS Pharmaceuticals stock

Published 30/06/2025, 11:50
Raymond James reiterates strong buy on ARS Pharmaceuticals stock

Investing.com - Raymond (NSE:RYMD) James maintained its Strong Buy rating and $32.00 price target on ARS Pharmaceuticals Inc (NASDAQ:SPRY), which is trading near its 52-week high of $18.90, following increased investor interest in the firm’s analysis of the company’s neffy prescription data. According to InvestingPro data, the stock has delivered an impressive 114% return over the past year, with analyst targets ranging from $28 to $40.

The research firm adjusted its second-quarter net sales estimate for neffy to $12.8 million, up from its previous estimate of $9.7 million, after discussions with management revealed script capture rates reached above 90% by quarter-end.

Raymond James noted that weekly prescriptions appear to be inflecting upward, which it believes reflects major second-quarter tailwinds for the pharmaceutical company’s product.

Despite the increased second-quarter estimate, the firm did not make significant adjustments to its fiscal year 2025 and 2026 estimates or its price target for ARS Pharmaceuticals.

Raymond James emphasized that investors are primarily focused on sales during the back-to-school peak in the third quarter and fourth quarter, rather than the early-stage launch numbers from the second quarter.

In other recent news, ARS Pharmaceuticals reported its Q1 2025 earnings, with revenue reaching $8 million, surpassing the forecast of $7.48 million. This increase was largely attributed to the successful launch of NEFI, the first needle-free epinephrine treatment. Despite the revenue beat, the company reported a net loss of $33.9 million, or $0.35 per share, slightly missing the earnings per share forecast. ARS Pharmaceuticals is anticipating a sales inflection in Q3 2025, with peak sales expected in August and September. The company is also progressing with regulatory reviews in international markets, including the UK and Japan, with launches expected from mid-2025 to early 2026. In addition, ARS Pharmaceuticals announced a new direct-to-consumer campaign titled "Hello NEFI, Goodbye Needles" to increase product awareness and adoption. The company has also expanded its strategic collaboration with AOK Abello to enhance its commercial reach. These developments reflect ARS Pharmaceuticals’ strategic initiatives and product potential, despite mixed market reactions to its earnings announcement.

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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