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Assertio Therapeutics, Inc. (NASDAQ:ASRT) stock has reached a new 52-week low, dipping to $0.68, as investors navigate a tumultuous market environment. With a market capitalization of $67.5 million and a notable free cash flow yield of 39%, InvestingPro analysis suggests the stock may be undervalued at current levels. The pharmaceutical company, known for its focus on pain management treatments, has seen its shares struggle over the past year, culminating in this latest trough. The 1-year change data for the company, formerly known as Depomed , reflects a significant decline of 26.49%, underscoring the challenges faced by the firm in a competitive and rapidly evolving healthcare sector. Investors are closely monitoring the company’s performance and strategic initiatives as it attempts to recover from this low point and improve its market position. Notably, analyst price targets range from $1.75 to $3.50, suggesting potential upside. For deeper insights into ASRT’s valuation and 6 additional exclusive tips, visit InvestingPro.
In other recent news, Assertio Holdings reported its fourth-quarter 2024 earnings, with revenue surpassing expectations at $32.18 million, compared to the anticipated $28.67 million. The company also recorded a narrower-than-expected loss per share of $0.03, which was less than the forecasted $0.04. For the full year, Assertio achieved annual revenues of approximately $125 million, slightly exceeding projections. However, the company has set a more conservative revenue guidance for 2025, ranging between $108 million and $123 million, which is lower than previous expectations.
H.C. Wainwright analyst Raghuram Selvaraju adjusted Assertio’s stock price target to $3.50 from $4.00, maintaining a Buy rating. The revision comes despite the positive earnings surprise, due to a cautious outlook for 2025 amid competitive pressures and slower-than-anticipated sales growth for some products. The analyst also projects a net loss for Assertio in 2025 of $0.19 per share, which is a downward revision from the previously expected loss of $0.03 per share. Assertio’s CEO, Brendan O’Grady, highlighted the company’s transformation strategy for 2025, emphasizing potential strategic acquisitions to drive growth.
Assertio’s product sales for the year reached $120.8 million, with Rolvadon sales contributing significantly. The company anticipates modest growth for Rolvadon and double-digit growth for SYMPAZAN in 2025. Despite these positive developments, Assertio faces challenges from generic competition, particularly impacting its INDOCIN franchise. The company’s strategic focus remains on product innovation and expansion to navigate these competitive pressures.
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