Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
Investing.com - Oppenheimer raised its price target on Veru, Inc. (NASDAQ:VERU) to $25.00 from $4.00 on Wednesday, while maintaining an Outperform rating on the stock. The new target represents significant upside from the current price of $3.41, though InvestingPro data shows the stock has declined over 61% in the past year.
The significant price target increase follows Veru’s quarterly update on its progress with enobosarm, a drug being developed to preserve lean body mass in patients using GLP-1 receptor agonists for weight loss. With a market capitalization of just $50.42 million, InvestingPro analysis reveals the company maintains a healthy balance sheet with more cash than debt.
Veru reported statistically significant benefits to muscle function and safety for the 3mg dose in its Phase 2b QUALITY study and maintenance extension, positioning this as the dose for future development.
The company expects to reach alignment with the FDA later this year on the design of its pivotal program, and has detailed plans for a modified-release formulation to be used in Phase 3 trials.
Oppenheimer highlighted that this modified-release form could extend patent protection for the approved product until 2046, a development the firm considers crucial given limited remaining life on issued intellectual property.
In other recent news, Veru Inc. reported its third-quarter financial results for fiscal year 2025, which highlighted a significant earnings per share (EPS) miss. The company posted an EPS of -$0.50, which was substantially below the forecasted -$0.05. This represents a 900% deviation from analyst expectations. Despite effective expense management and strategic business shifts, the market reacted negatively to the earnings results. In related developments, Raymond James adjusted its price target for Veru, lowering it from $30.00 to $20.00, while maintaining an Outperform rating. This adjustment comes as Veru prepares for an End-of-Phase 2 meeting with the FDA concerning its Enobosarm obesity program. These events reflect the company’s ongoing challenges and strategic initiatives in the healthcare sector.
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