Plus Therapeutics stock sees reduced target after softer-than-expected Q2 results

Published 03/09/2024, 14:12
Plus Therapeutics stock sees reduced target after softer-than-expected Q2 results

On Tuesday, Ascendiant Capital revised its price target for NASDAQ:PSTV, Plus Therapeutics (NASDAQ:PSTV) Inc., to $20.00 from the previous $21.00, while keeping a Buy rating on the stock. The adjustment follows the company's reported Q2 2024 financial results on August 14, which showed revenues and earnings per share (EPS) below analyst and consensus expectations.

Plus Therapeutics disclosed a Q2 revenue of $1.3 million, falling short of the anticipated $1.6 to $1.7 million range. The company also reported an EPS of $(0.71), with a net loss of $7.6 million, which was not in line with the estimated $(0.37) and consensus of $(0.53). Notably, Plus Therapeutics had not provided any financial guidance for Q2.

The absence of financial guidance for the year 2024 from the management was noted. However, Ascendiant Capital suggests that the current quarterly cash burn rate of approximately $3 million could be a plausible near-term expectation.

The firm has consequently revised its 2024 revenue estimates for Plus Therapeutics, reducing the forecast from $7 million to $5 million, and adjusted the EPS estimate to $(2.00) from the previous $(1.69).

The changes in the financial outlook for Plus Therapeutics reflect the latest earnings miss and the lack of guidance from the company's management.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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