Veru stock price target lowered to $20 at Raymond James on obesity drug

Published 13/08/2025, 11:18
Veru stock price target lowered to $20 at Raymond James on obesity drug

Investing.com - Raymond James has lowered its price target on Veru, Inc. (NASDAQ:VERU) to $20.00 from $30.00 while maintaining an Outperform rating on the stock. According to InvestingPro analysis, the stock is currently trading below its Fair Value, despite falling over 61% in the past year.

The adjustment follows Veru’s third-quarter 2025 results, which demonstrated effective expense management as the company prepares for an upcoming End-of-Phase 2 meeting with the FDA regarding its Enobosarm obesity program. The company maintains a healthy liquidity position with a current ratio of 3.8 and more cash than debt on its balance sheet, though InvestingPro data indicates rapid cash burn remains a concern.

Veru recently reported positive Phase 2b QUALITY trial results showing that Enobosarm’s 3mg dose achieved 100% average lean mass preservation when combined with semaglutide at 16 weeks. The company’s Maintenance Extension study also demonstrated that Enobosarm significantly reduced weight and fat regain while preserving lean mass following semaglutide discontinuation.

The company has selected a novel modified-release oral 3mg formulation for Enobosarm that achieved a desirable pharmacokinetic profile and will have extended patent protection. This formulation is expected to be used in Phase 3 trials and commercially.

Veru is currently engaged in partnership discussions and considering various financing options for its Phase 3 program, with the FDA meeting scheduled for later this quarter to align on trial design elements including size, duration, endpoints, and patient population.

In other recent news, Veru Inc. reported its third-quarter financial results for fiscal year 2025, revealing a significant earnings per share (EPS) miss. The company posted an EPS of -$0.50, which was substantially below the projected -$0.05. This marked a 900% deviation from analyst expectations. Despite efforts in cost reductions and strategic business shifts, the market’s response to the earnings miss was notably negative. The company’s financial outlook also contributed to the reaction. No recent mergers or acquisitions have been reported. Analyst firms have not provided any upgrades or downgrades in response to these results. These developments reflect the current challenges Veru Inc. is facing.

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