Piper Sandler has adjusted the price target for Beyond Air (NASDAQ: NASDAQ:XAIR) shares, reducing it to $1.00 from the previously set $3.50.
Despite the price target cut, the firm maintained an Overweight rating on the stock.
The revision followed Beyond Air's first-quarter results, which showed revenue of $0.6 million, slightly below the street's expectation of $0.7 million.
The company also reported an operating loss of $13.5 million, marginally greater than the anticipated $13.3 million loss, and a loss per share of $0.27, which was better than the street's forecast of a $0.32 loss per share.
The delay in the hospital contracting process has been longer than anticipated, but there are positive signs, such as the increased use of Beyond Air's LungFit PH system in several hospitals and a growing number of multi-year contracts in the pipeline.
The management team at Beyond Air remains optimistic, maintaining their outlook for the year. However, this forecast is contingent on significant contracting activity in the second half of the year.
The current valuation of Beyond Air reflects the challenges faced by the company, which is also the reason for the reduced price target.
The firm's analyst indicated that while the valuation is conservative, it is the stock's low price that supports the Overweight rating.
Beyond Air reported fourth-quarter fiscal year 2024 revenue of $470,000, falling short of BTIG's estimate of $694,000 and the consensus of $743,000. As a result, BTIG downgraded Beyond Air from Buy to Neutral due to concerns about profitability and near-term cash requirements. Despite this, the company has adjusted its fiscal year 2025 revenue outlook, now expecting to exceed $10 million.
InvestingPro Insights
Beyond Air (NASDAQ:XAIR) has faced a challenging period, as reflected in the recent price target adjustment by Piper Sandler. To provide investors with a more comprehensive view, here are some key InvestingPro Data metrics and InvestingPro Tips related to the company's current financial health and market performance:
InvestingPro Data:
- Market Cap (Adjusted): 23.17M USD
- Revenue Growth (last twelve months as of Q1 2023): 2922.03%
- Price, Previous Close: 0.51 USD
InvestingPro Tips:
1. Beyond Air holds more cash than debt on its balance sheet, which may offer some financial flexibility in its operations.
2. Despite recent setbacks, analysts anticipate sales growth in the current year, which could signal potential for recovery.
For investors seeking more detailed analysis, there are over 15 additional InvestingPro Tips available for Beyond Air at InvestingPro, which could provide deeper insights into the company's future prospects and investment potential.
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