TriSalus stock holds Buy rating with $11 target

On Friday, TriSalus Life Sciences, Inc. (NASDAQ:TLSI) maintained a Buy rating and an $11.00 price target from Jones Trading. The optimism is based on the anticipated clinical benefits of its product Nelitolimod, delivered through the TriNav system, for patients with certain solid tumors.

The TriNav system is expected to continue its revenue growth and provide a substantial cash flow to support the ongoing development of Nelitolimod.

The company's future prospects are tied to the outcomes of the PERIO-01 and PERIO-03 trials, which are expected to shed light on the potential of Nelitolimod. These results are anticipated to be well-received by both investors and the market, according to Jones Trading.

The firm's $11 price target for TriSalus is derived from a risk-adjusted discounted cash flow (DCF) valuation. This valuation includes cash flow projections up to the year 2034. It also factors in a 12.5% discount rate and assumes a 0% terminal growth rate in the calculations.

Jones Trading has assigned varying probabilities of success to the company's SD-101 drug, which is being developed for different types of cancer. A 25% chance of success is given to SD-101 in treating locally advanced Pancreatic Ductal Adenocarcinoma (PDAC) and Uveal Melanoma Metastatic to the Liver (UMML), and a 5% probability for its use in second-line Intrahepatic Cholangiocarcinoma (ICC) and end-stage Hepatocellular Carcinoma (HCC).

In other recent news, TriSalus Life Sciences has been making significant strides in its growth trajectory. Canaccord Genuity has maintained its Buy rating on the company, drawing attention to several upcoming developments.

By the end of 2024, TriSalus is expected to expand its market reach with the introduction of a larger-sized version of its medical device, potentially increasing its addressable market by approximately 25%.

The company also looks forward to announcing results from its three Phase 1 PERIO trials and deciding on the next steps for the Phase 2/3 trials of nelitolimod, its therapeutic candidate.

In addition, TriSalus has secured a $50 million credit facility with healthcare investment firm OrbiMed, which will extend its cash runway through 2025. The company also launched an exchange offer for its various classes of warrants, aiming to streamline its capital structure.

This move is expected to provide greater financial flexibility for future operations. Furthermore, TriSalus has welcomed Liselotte Hyveled, a veteran in pharmaceutical research and development, to its Board of Directors.

Finally, analysts from Jones Trading initiated their coverage on TriSalus with a Buy rating, setting a price target of $16.00. These recent developments underline the company's potential for growth and strategic initiatives in the oncology sector.

InvestingPro Insights

TriSalus Life Sciences, Inc. (NASDAQ:TLSI) is navigating a critical phase with its innovative Nelitolimod treatment, and the latest insights from InvestingPro provide a nuanced look at the company's financial health. TLSI boasts an impressive gross profit margin of 87.65% for the last twelve months as of Q2 2024, indicating strong profitability potential from its sales. However, the company is rapidly depleting its cash reserves, which could pose a risk to its ambitious development plans for Nelitolimod.

Despite the challenges, TLSI's liquid assets surpass its short-term obligations, suggesting that the company is well-positioned to manage its immediate financial commitments. This is a critical factor for investors to consider, given that analysts do not anticipate TLSI will be profitable this year. The market cap stands at 166.34M USD, reflecting the company's current valuation in the market.

InvestingPro Tips further reveal that TLSI operates with a moderate level of debt and has not been profitable over the last twelve months. Additionally, there's a note of caution as the price has fallen significantly over the last three months. For a comprehensive analysis and more InvestingPro Tips, interested investors can find additional insights on the InvestingPro platform, which lists numerous tips to guide investment decisions.

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