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On Tuesday, Raymond (NSE:RYMD) James made an adjustment to UroGen Pharma’s (NASDAQ:URGN) financial outlook, with analyst Reni Benjamin reducing the price target from $40.00 to $36.00 while maintaining an Outperform rating on the company’s shares. This decision was influenced by UroGen Pharma’s fourth-quarter sales of Jelmyto, which at $24.6 million, slightly missed the consensus estimate of $25.6 million. According to InvestingPro data, the company maintains impressive gross profit margins of 90.27% and has demonstrated year-over-year revenue growth of 15.64%.
The analyst highlighted the anticipation of a forthcoming advisory committee (ad comm) meeting for UGN-102, expected to be scheduled in May, and the potential FDA approval for the treatment of recurrent low-grade, intermediate-risk non-muscle invasive bladder cancer (NMIBC) by the action date of June 13. UroGen Pharma is preparing for the commercial launch of UGN-102 by increasing its sales representative count from 52 to approximately 83. InvestingPro analysis reveals the company maintains a strong liquidity position with a current ratio of 9.0, suggesting robust operational flexibility for this expansion.
Benjamin’s projections for UroGen Pharma are optimistic, with estimated total product sales reaching $750 million by the year 2029. The company’s year-end cash resources were reported to be $242 million. The analyst expressed a positive outlook on the stock, stating, "We believe the shares are trading at a deep discount to 102’s opportunity as URGN leverages its presence in uro-oncology. Reiterate Outperform."
The current financial analysis of UroGen Pharma reflects the company’s ongoing efforts to expand its market presence in uro-oncology and the potential growth opportunities presented by its product pipeline. The maintained Outperform rating indicates confidence in the company’s future performance despite the slight downward adjustment in the price target.
In other recent news, UroGen Pharma reported its fourth-quarter and full-year financial results for 2024, revealing a slight miss on revenue expectations. The company posted fourth-quarter revenue of $24.6 million, falling short of the analyst estimate of $25.3 million. Despite this, UroGen’s net loss for the year was narrower than expected, at $2.96 per share compared to the forecasted $3.01 per share. The biotech firm ended the year with a robust cash position of $241.7 million, supporting future operations and the upcoming launch of its drug candidate UGN-102.
H.C. Wainwright analyst Raghuram Selvaraju adjusted the price target for UroGen Pharma shares to $55, down from $64, while maintaining a Buy rating, reflecting confidence in the company’s long-term prospects despite the revenue shortfall. UroGen’s flagship product, JELMYTO, reported net product revenue of $24.6 million in the fourth quarter, up from $23.5 million the previous year, contributing to a full-year total of $90.4 million. Looking forward, UroGen anticipates JELMYTO net product revenues between $94 million and $98 million for 2025, with operating expenses projected between $215 million and $225 million. The company also highlighted significant progress with UGN-102, including the submission of a new drug application ahead of schedule.
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