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On Monday, BMO Capital Markets adjusted its price target for Y-mAbs Therapeutics (NASDAQ:YMAB), bringing it down to $25.00 from the previous $26.00 while maintaining an Outperform rating for the stock. This revision follows the company's second-quarter 2024 earnings report, which showed total revenues of $22.8 million. The figure was slightly below the FactSet consensus by 0.9% but surpassed BMO Capital's estimate by 3.6%.
The company has also revised its full-year 2024 revenue guidance, now projecting revenues to be between $87 million and $95 million, a decrease from the earlier forecast of $95 million to $100 million. This updated guidance has had a negative impact on Y-mAbs Therapeutics' shares.
Despite the lowered revenue outlook, BMO Capital's stance on the potential growth of Danyelza, a key product for Y-mAbs, remains positive. The firm believes that the drug will continue to support the funding of the company's unique SADA radiopharmaceutical platform. The management of Y-mAbs Therapeutics anticipates that Part A of the Phase 1 trial for GD2-SADA will be completed in the fourth quarter, with results expected in late 2024 or the first quarter of 2025.
The analyst from BMO Capital reiterated the Outperform rating, citing unchanged expectations for Danyelza's growth trajectory and the company's ability to finance its innovative radiopharmaceutical platform. The price target adjustment to $25.00 from $26.00 reflects a more conservative outlook for Danyelza's growth in the years 2024 and 2025.
In other recent news, Y-mAbs Therapeutics has disclosed mixed results from its Q2 earnings for 2024. The company reported a 10% rise in total DANYELZA net product revenue, reaching $22.8 million, primarily due to a 55% increase in international orders. However, the firm experienced a 4% drop in US DANYELZA revenue, falling to $15.2 million, attributed to new competitive therapies and ongoing clinical trials. Despite these challenges, Y-mAbs Therapeutics remains positive, pointing to a refined commercial strategy and the progress of its SADA PRIT programs.
In terms of financials, a net loss of $9.2 million was reported for Q2, with full-year net revenue projected between $87 million and $95 million. The company's cash position is expected to support operations through 2027. These recent developments suggest a complex landscape of growth and challenges for Y-mAbs Therapeutics.
Furthermore, Y-mAbs Therapeutics is making strides in expanding DANYELZA's reach, having received approval in Hong Kong. The company also highlighted the efficacy of DANYELZA in patients who have not responded to prior therapy, and the Phase I trial for GD2-SADA is progressing, with Cohort 5 currently being tested.
InvestingPro Insights
As Y-mAbs Therapeutics (NASDAQ:YMAB) navigates through its financial year, a closer look at InvestingPro's real-time data and tips offers a comprehensive picture of the company's current standing. With a market capitalization of $436.63 million, YMAB presents a significant presence in its sector. The company's gross profit margin impresses at 86.41%, indicating effective cost control relative to its revenue, which stands at $84.5 million over the last twelve months as of Q1 2024. Despite a slight quarterly revenue decline of 1.58%, the annual revenue growth remains positive at 12.62%.
InvestingPro Tips highlight that Y-mAbs holds more cash than debt, providing a solid liquidity position, which is further reinforced by liquid assets exceeding short-term obligations. This financial health is critical for the company as it continues to invest in its SADA radiopharmaceutical platform. However, analysts remain cautious as they do not anticipate the company to be profitable this year, which aligns with the negative earnings per share figures for the last twelve months. Furthermore, the company's high return over the last year, with a 101.98% price total return, reflects investor optimism that may be associated with its innovative drug development efforts.
For investors seeking a deeper dive into Y-mAbs Therapeutics, InvestingPro offers additional insights and tips, with 6 more tips available that could inform investment decisions. These insights, alongside the analyst-targeted fair value of $22.50 and InvestingPro's own fair value estimate of $11.42, provide a range of perspectives for evaluating the company's potential.
Investors may continue to monitor the company's progress, especially with the anticipated completion of the Phase 1 trial for GD2-SADA, which could be a pivotal moment for Y-mAbs and its valuation. For more detailed analysis and tips, interested parties can refer to InvestingPro's full suite of tools.
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