China smartphone shipments slumped in June on inventory overhang: Jefferies
On Thursday, Scotiabank (TSX:BNS) analyst Greg Harrison updated Liquidia Technologies’ (NASDAQ:LQDA) stock outlook, raising the price target to $34.00 from the previous $30.00, while maintaining a Sector Outperform rating. The stock, currently trading at $14.92, has shown impressive momentum with a 50% gain over the past six months. According to InvestingPro data, analyst targets range from $20 to $35, with a strong consensus recommendation of 1.5 (where 1 is Strong Buy). The adjustment follows Liquidia’s fourth-quarter call, which highlighted the company’s preparedness for the commercial launch of Yutrepia, its treatment for pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD).
The recent affirmation of Tyvaso DPI’s regulatory exclusivity by the District Court is expected to pave the way for Yutrepia’s full approval in late second quarter of 2025. Liquidia appears confident in its ability to secure favorable coverage policies, which would facilitate a smooth market entry for Yutrepia. InvestingPro analysis indicates the company maintains strong liquidity with a current ratio of 4.43, suggesting adequate resources to support the launch. For deeper insights into Liquidia’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Harrison noted the positive implications of new data from the ASCENT trial, which demonstrated a significant 26.4-meter improvement in the six-minute walk test, further distinguishing Yutrepia’s profile in the market. This data bolsters the company’s prospects as it awaits the drug’s approval and subsequent launch.
To support the development and commercialization of Yutrepia and L606, Liquidia has secured a financing agreement with HealthCare Royalty worth $100 million. The funds will be distributed in three portions: $25 million at closing, $50 million upon the first commercial sale of Yutrepia, and another $25 million if Yutrepia’s aggregate net sales surpass $100 million by June 30, 2026. While currently operating with moderate debt levels, the company’s market capitalization stands at $1.26 billion, reflecting investor confidence in its growth potential.
In conclusion, Scotiabank’s revised price target reflects the anticipated success of Yutrepia’s launch and Liquidia’s strengthened financial position. Harrison’s report also includes a detailed catalyst calendar for investors to track the company’s progress.
In other recent news, Liquidia Technologies reported its financial results for the fourth quarter of 2024, revealing a net loss larger than expected and revenue below analyst forecasts. The company posted a quarterly revenue of $2.92 million, missing the predicted $4.54 million, and a full-year revenue of $14 million, down from $17.5 million in 2023. Despite these challenges, Liquidia is optimistic about its future, particularly with the anticipated launch of its product, Yutrepia, in May 2025. Analysts at H.C. Wainwright and Raymond (NSE:RYMD) James have maintained positive ratings on Liquidia, with price targets of $29 and $27, respectively, reflecting confidence in the company’s strategic plans and product potential. The Supreme Court’s decision not to review a competitor’s appeal has cleared the path for Yutrepia’s approval for treating pulmonary arterial hypertension. Liquidia is preparing for the commercial launch of Yutrepia and plans to present new data at the American Thoracic Society conference in May. Additionally, the company has secured $100 million in financing to support its strategic initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.