Microsoft shares jump after fourth-quarter earnings beat on AI-fueled cloud growth
On Friday, H.C. Wainwright adjusted its outlook on shares of Rani Therapeutics Holdings (NASDAQ:RANI), reducing the 12-month price target to $9 from the previous $13, while maintaining a Buy rating on the company's stock. The adjustment follows Rani Therapeutics' release of its financial outcomes for the second quarter of 2024, wherein the company reported a net loss of $0.51 per share, which was in line with the analyst firm's expectations.
The reported net loss included figures accounting for non-controlling interests and was closely aligned with H.C. Wainwright's projection of a $0.57 per share net loss. Research and Development (R&D) expenses amounted to $6.1 million, and Selling, General, and Administrative (SG&A) costs were $6.4 million for the quarter. These figures were slightly lower than the analyst's estimates of $7.8 million for R&D and $6.5 million for SG&A expenses.
Moving forward, H.C. Wainwright has revised its full-year net loss forecast for Rani Therapeutics to $2.19 per share, which is an improvement from the prior estimate of $2.36 per share, again including non-controlling interests. The updated price target reflects considerations for equity dilution stemming from the company's most recent financing activities.
The firm reiterated its Buy rating on Rani Therapeutics, indicating a continued positive outlook on the stock despite the adjustment in the price target. The revised target is set with a view over the next 12 months, suggesting that the analyst firm sees potential for the company's value to grow within that timeframe.
In other recent news, Rani Therapeutics has secured approximately $10 million from a stock sale, involving the sale of 2.8 million shares of Class A common stock and pre-funded warrants for an additional 446,753 shares. Maxim Group LLC is acting as the sole placement agent for this offering.
On the financial front, Rani Therapeutics reported a net loss of $0.56 per share for Q1 2024. Following this, Canaccord Genuity adjusted its financial outlook for the company, reducing its price target from $21.00 to $9.00 due to a shift in the clinical development timeline.
The company recently decided against pursuing an equity financing round after evaluating its current cash position, business forecast, and prevailing market conditions. Despite this, Rani Therapeutics remains open to revisiting this option in the future.
In partnership news, Rani Therapeutics and South Korean biotech firm, ProGen Co., Ltd., have announced a collaboration to co-develop and commercialize RT-114, an oral therapeutic for obesity. The partnership will leverage Rani's RaniPill® capsule and ProGen's proprietary protein, PG-102. The companies have agreed on a 50/50 cost and revenue share arrangement for the global development and commercialization of the product.
Stifel reaffirmed its Buy rating on shares of Rani Therapeutics, maintaining a steady price target of $10.00. This follows the company's recent collaboration with ProGen to co-develop an oral formulation of ProGen's drug, PG-102, for obesity treatment.
InvestingPro Insights
As investors digest the latest financial outcomes from Rani Therapeutics Holdings, InvestingPro data provides a deeper look into the company's market position. With a market capitalization of $143.13 million, Rani Therapeutics is navigating a challenging landscape, highlighted by a negative P/E ratio of -2.29, which further drops to -4.68 when adjusted for the last twelve months as of Q2 2024.
This reflects the company's current lack of profitability, as echoed by the significant net loss reported in the second quarter. The price to book ratio stands at an elevated 50.49, suggesting a premium valuation compared to the company's book value.
InvestingPro Tips further reveal the company's financial health and stock performance nuances. Rani Therapeutics has been rapidly burning through its cash reserves, and analysts do not expect the company to turn profitable within this year. The stock experienced a significant return over the last week with an 18.58% increase, yet it has suffered over the last month and quarter with declines of 32.15% and 50.92%, respectively.
These fluctuations highlight the stock's current volatility and the market's reaction to its financial situation. Moreover, the company is operating with a moderate level of debt and does not pay a dividend, which may influence investment decisions for those seeking income-generating assets.
For investors seeking to make informed decisions, there are 10 additional InvestingPro Tips available on the platform, providing a comprehensive analysis of Rani Therapeutics' performance and projections. These insights might prove crucial for those looking to understand the company's potential in light of recent developments and market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.