RBC Capital cuts Perspective Therapeutics stock target

Published 16/08/2024, 12:44
RBC Capital cuts Perspective Therapeutics stock target

RBC Capital has adjusted its price target for Perspective Therapeutics Inc (NYSE: CATX), reducing it to $27.00 from the previous $29.00, while retaining an Outperform rating for the stock.

The decision follows Perspective Therapeutics' announcement in their second-quarter report and a subsequent meeting with management that the company plans to increase the number of participants in Cohort 2 of their VMT-α-NET study to 47 from the original 7.

The expansion comes as the company prepares for discussions with the FDA by the end of 2024 before proceeding to Cohort 3, in line with their development strategy for the treatment.

The firm's analyst noted that the expansion of Cohort 2 likely indicates the company's confidence in the initial profile of VMT-α-NET, as the increased patient data set could assist in determining the recommended phase 2 dose (RP2D).

The preliminary data from Cohort 1 and 2, which includes 9 patients, is expected to remain on schedule for release in the second half of the year.

The adjustment to Perspective Therapeutics' price target also reflects the increased number of shares following a reverse stock split conducted in June. Despite the reduction in the price target, RBC Capital maintains its Outperform rating, acknowledging the speculative risk associated with the stock.

The company's efforts to align with FDA guidelines before advancing their clinical trial stages demonstrate a methodical approach to drug development.

In other recent news, Perspective Therapeutics has entered a Controlled Equity Offering Sales Agreement with Cantor Fitzgerald & Co. and RBC Capital Markets, allowing for the potential sale of up to $250 million of its common stock.

This follows the termination of a previous agreement which concluded with the sale of shares totaling approximately $49.9 million. Oppenheimer has maintained an Outperform rating for Perspective Therapeutics but lowered the stock target to $17 from $19 following the company's Q2 results. Despite a robust Q2 ending with $293 million in cash reserves, Oppenheimer has adjusted the price target due to the company's substantial spending strategy.

In addition, Perspective Therapeutics secured $80 million in financing after a 10-for-1 reverse stock split, leading Oppenheimer to raise the shares target to $19. The financing is expected to fund various corporate purposes, including the continued clinical development of several pipeline products. RBC Capital Markets also maintained its Outperform rating and $3.00 price target for Perspective Therapeutics, highlighting the company's progress in the radiopharmaceutical therapy sector. Lastly, Oppenheimer reiterated an Outperform rating on Perspective Therapeutics with a steady price target of $2.00, following a series of investor meetings.

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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