On Thursday, Canaccord Genuity adjusted its price target on Aptose Biosciences (NASDAQ:APTO) shares, a clinical-stage biotechnology company, reducing it to $6.00 from the previous target of $15.00. The firm retained its Buy rating on the stock despite the adjustment.
The revision of the price target comes as Canaccord Genuity anticipates a delay in the regulatory approval process for Aptose Biosciences' lead drug candidate, tuspetinib.
The firm now projects potential approval by the Food and Drug Administration (FDA) and the European Medicines Agency (EMA) to occur in 2027, a shift from the previous expectation of 2025.
In a statement, Canaccord Genuity cited the revised timeline for tuspetinib's approval in acute myeloid leukemia (AML) as the primary reason for the price target change. The new target reflects a more conservative outlook on the drug's path to market, aligning with the updated regulatory expectations.
Additionally, the firm noted the recent increase in the number of Aptose Biosciences' shares. Early in 2024, the company's share count rose to approximately 13 million, up from around 7 million shares in late 2023. This dilution of shares has been factored into the new price target, as it can affect the stock's valuation.
The Buy rating suggests that Canaccord Genuity continues to see the potential for Aptose Biosciences' stock to perform well in the long term, despite the near-term hurdles and adjustments to the company's financial projections.
InvestingPro Insights
Canaccord Genuity's revised price target for Aptose Biosciences is echoed in the current market sentiment, with InvestingPro data showing a market capitalization of just $18.84 million. The clinical-stage biotech company is trading near its 52-week low, with the price at a previous close of $1.18, which is only 15.76% of its 52-week high. This reflects a significant downturn, as indicated by a 1-year price total return of -83.37%.
Two key InvestingPro Tips for Aptose Biosciences highlight the financial challenges the company faces. Firstly, while Aptose holds more cash than debt, it is quickly burning through cash, which is a concern for investors. Secondly, analysts do not anticipate the company will be profitable this year, further underscoring the need for careful consideration of the stock's long-term prospects.
For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available that could provide deeper insights into Aptose Biosciences' financial health and stock performance. Interested readers can find these tips on the InvestingPro platform and can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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