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On Tuesday, Cantor Fitzgerald adjusted its price target for Y-mAbs Therapeutics (NASDAQ:YMAB) shares, moving the goalpost down to $19.00 from the previous $20.00, while maintaining an Overweight rating on the stock. Currently trading at $4.82, the stock sits well below analyst targets ranging from $11 to $26. According to InvestingPro analysis, Y-mAbs appears undervalued based on its Fair Value estimate. This revision follows the company’s release of mixed financial guidance for the year 2025.
Y-mAbs Therapeutics, a biopharmaceutical company, has presented a 2025 sales forecast for its neuroblastoma treatment, Danyelza, ranging between $75 million and $90 million. This projection indicates a relatively flat year-over-year growth compared to the $88 million in sales recorded for 2024. The company maintains impressive gross profit margins of 88.83%, though InvestingPro data indicates net income is expected to decline this year. Analysts noted that the management’s guidance for the current year appears more firm and realistic, potentially leading to reduced volatility in the company’s share price.
The company has also hinted at potential tailwinds that could stimulate growth for Danyelza. Notably, high single-digit growth is anticipated for 2026 and the following years, driven by investments in clinical trials scheduled for 2025. Furthermore, the development of a GD2 companion diagnostic could provide a competitive advantage for Danyelza by facilitating expansion into additional indications, such as osteosarcoma.
In response to the company’s guidance, Cantor Fitzgerald has made adjustments to its first-quarter and full-year 2025 revenue and operating expense predictions, which has resulted in a lowered earnings per share estimate for both time frames. The decrease in the price target to $19 from $20 is attributed to the updated growth expectations for Danyelza and a more conservative outlook on its market ramp-up compared to prior estimates. Despite the stock’s significant decline of 70% over the past year, InvestingPro maintains a "GOOD" overall financial health rating, with 8 additional ProTips available for subscribers.
In other recent news, Y-mAbs Therapeutics has reported its financial results for the fourth quarter of 2024, which fell short of earnings and revenue expectations. The company posted an EPS of -0.15, missing the forecast of -0.1165, and revenue of $24.5 million, below the anticipated $26.99 million. Additionally, Y-mAbs provided a revenue guidance for 2025 ranging between $75-90 million, which is below the consensus estimate of $104 million. Meanwhile, BofA Securities adjusted its price target for Y-mAbs to $12.00 from $14.00, maintaining a Neutral rating, due to a slower than expected launch of Danyelza and the need for further rebuilding. Clear Street also revised its outlook, reducing the price target from $21.00 to $18.00 while maintaining a Buy rating, citing the potential profitability of Danyelza and upside from the company’s SADA platform. Despite the revenue shortfall, Y-mAbs remains optimistic about its strategic realignment and the potential of its radiopharmaceutical business unit, with cash reserves projected to last into 2027.
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