Raymond James reiterates Strong Buy on Ocular Therapeutix stock with $19 target

Published 05/08/2025, 17:30
Raymond James reiterates Strong Buy on Ocular Therapeutix stock with $19 target

Investing.com - Raymond (NSE:RYMD) James has reiterated its Strong Buy rating and $19.00 price target on Ocular Therapeutix (NASDAQ:OCUL) following the company’s second-quarter 2025 financial results. According to InvestingPro data, analyst price targets for OCUL currently range from $14 to $22, with the stock trading near its 52-week high of $12.35.

Ocular Therapeutix reported $13.5 million in total revenue for the quarter, exceeding Raymond James’ estimate of $12.0 million. The company posted a diluted earnings per share loss of $(0.39), slightly worse than the projected $(0.37) loss. Revenue came primarily from Dextenza, with unit sales up 5% year-over-year and revenues up approximately 25% quarter-over-quarter, though down about 18% year-over-year due to challenging reimbursement conditions. InvestingPro analysis reveals weak gross profit margins, with several additional insights available to subscribers.

The company ended the second quarter with approximately $391 million in cash and equivalents, bolstered by a $97 million ATM offering in June. Management has guided that this cash position will fund operations into 2028, beyond the topline results for the SOL-1 and SOL-R studies, but does not account for a potential NPDR Phase 3 or wAMD long-term extension study. The company maintains strong liquidity with a current ratio of 10.22, and InvestingPro data shows it holds more cash than debt on its balance sheet.

Ocular Therapeutix completed enrollment for its SOL-R study in June 2025, with a six-month loading and randomization phase now underway. The company’s near-term focus remains on the first-quarter 2026 topline readout of its SOL-1 trial.

The company has scheduled an investor day for September 30, 2025, where it plans to provide more detailed information on strategic plans for pivotal development of Axpaxli in NPDR and DME, as well as a newly announced long-term extension study for Axpaxli in wAMD.

In other recent news, Ocular Therapeutix Inc . reported its financial results for the second quarter of 2025, revealing earnings per share of -$0.39. This figure fell short of analysts’ expectations, which had forecasted an EPS of -$0.35. Additionally, the company’s revenue was reported at $13.46 million, slightly missing the projected $13.56 million. These financial results have drawn attention from investors and analysts alike. The earnings miss and revenue shortfall mark a challenging period for Ocular Therapeutix. While the company navigates these financial hurdles, market participants will be closely monitoring any strategic moves or updates from the firm. The recent earnings announcement underscores the importance of meeting market expectations in maintaining investor confidence.

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