On Thursday, Oppenheimer initiated coverage on Capricor Therapeutics (NASDAQ: NASDAQ:CAPR), assigning the stock an Outperform rating and setting a price target of $14.00. The firm expressed optimism about the company's lead candidate, CAP-1002, for the treatment of Duchenne muscular dystrophy (DMD), with top-line results from the Phase 3 trial expected in the fourth quarter of this year.
The analyst from Oppenheimer forecasts that following the anticipated U.S. approval and market launch by 2026, Capricor's "off-the-shelf" cell therapy could achieve approximately $1 billion in net sales in the U.S. by the year 2030. This projection is in partnership with NS Pharma, which could result in around $310 million in revenue for Capricor in the same year.
The firm's confidence in Capricor is further bolstered by the potential of the company's preclinical exosome technology. This cell-free platform is seen as having a wide range of therapeutic and vaccine applications, which may lead to valuable deals within the industry over time.
Oppenheimer's coverage suggests that investors should consider taking a position in Capricor Therapeutics now, in anticipation of the pivotal trial results due later this year. The recommendation comes with the expectation that the company's growing revenue stream will support the advancement of its broader technology platform.
InvestingPro Insights
As investors weigh Oppenheimer's optimistic outlook on Capricor Therapeutics (NASDAQ: CAPR), current data from InvestingPro provides a multifaceted view of the company's financial health and market performance. With a market capitalization of $177.68 million and a notable revenue growth rate of 389.3% over the last twelve months as of Q1 2024, Capricor shows signs of rapid expansion in its financials. This growth is further highlighted by a quarterly revenue growth of 64.29% in Q1 2024, indicating a strong upward trend.
However, the company is facing challenges as well. The InvestingPro Tips highlight concerns such as Capricor's quick cash burn and weak gross profit margins, which stand at -34.5%. Moreover, analysts have revised their earnings downwards for the upcoming period, and they do not anticipate the company will be profitable this year. These insights may be crucial for investors considering the timing of Oppenheimer's recommendation.
Despite these challenges, Capricor has experienced a strong return over the last three months, with a price total return of 47.65%. It's also worth noting that the stock is currently trading at 68.6% of its 52-week high with a previous close price of $5.33. Investors looking to delve deeper into Capricor's prospects can find additional InvestingPro Tips for a comprehensive analysis. With the use of coupon code PRONEWS24, investors can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more insights to inform their investment decisions.
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