Scotiabank starts Perspective Therapeutics with Sector Outperform

Published 07/03/2025, 14:00
Scotiabank starts Perspective Therapeutics with Sector Outperform

On Friday, Scotiabank (TSX:BNS) initiated coverage on Perspective Therapeutics Inc (NYSE:CATX) shares, bestowing a Sector Outperform rating and establishing a price target of $15.00. Currently trading at $2.70, the stock sits well below analyst targets ranging from $6 to $21. The coverage launch by Scotiabank comes as Perspective Therapeutics stands out as one of the few remaining independent radiopharmaceutical companies in the industry.

In a statement released, Scotiabank highlighted the recent dip in stock price as an attractive entry point for investors, suggesting that the market may have overreacted to concerns surrounding the company’s neuroendocrine tumor (NET) program. Indeed, InvestingPro data shows the stock has declined by 82% over the past six months, with shares trading significantly below their 52-week high of $19.05. According to the bank, the skepticism regarding the competitiveness of the NET program is exaggerated.

Scotiabank’s analysis suggests that Perspective Therapeutics’ valuation does not yet reflect the potential of its other programs, which are currently in development. The firm expressed a positive outlook on the company’s melanoma, FAP-alpha, and pre-targeting platform programs, indicating a belief in their promising nature.

The $15.00 price target set by Scotiabank implies a level of confidence in Perspective Therapeutics’ future performance and growth potential. This target offers investors a quantifiable expectation for the company’s stock value within a one-year time frame.

Perspective Therapeutics’ status as a remaining independent player in the radiopharmaceutical space, coupled with the promising developments in its pipeline, has led to Scotiabank’s optimistic rating. While InvestingPro analysis indicates a weak overall financial health score, the company maintains a strong liquidity position with a current ratio of 9.6 and more cash than debt on its balance sheet. The Sector Outperform rating suggests that the bank expects the company to outperform the average sector performance in the foreseeable future. Discover 8 additional key insights and a comprehensive analysis of CATX’s potential with an InvestingPro subscription.

In other recent news, Lucid (NASDAQ:LCID) Capital Markets has raised its price target for Perspective Therapeutics Inc to $20.00 from the previous $15.00 while maintaining a Buy rating. This adjustment follows the company’s presentation of new data for its leading drug candidate, VMT-α-NET, at the ASCO GI 2025 conference. The drug is part of a Phase 1/2 study targeting neuroendocrine tumors, and the latest findings have shown potential to address previous concerns about its efficacy. These developments have led Lucid Capital Markets to express increased confidence in the drug’s potential, suggesting that it may be best-in-class. The firm believes the stock represents a buying opportunity at current prices, especially with the possibility of further positive data and higher dosing due to the drug’s safety profile. This optimism is reflected in the raised price target and the reiterated Buy rating from Lucid Capital Markets.

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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