Wednesday, an analyst from H.C. Wainwright adjusted the price target on shares of CASI Pharmaceuticals (NASDAQ: NASDAQ:CASI) shares, reducing it to $6.00 from the previous $12.00, but maintained a Buy rating on the company.
The revision followed the release of CASI's financial results for the first quarter of 2024, which included revenues of $3.4 million and a net loss of $0.71 per share.
The decrease in the price target is attributed to the fall in revenue, which dropped by 59% year-over-year. This decline was primarily due to heightened generic competition for Evomela, CASI's leading product, in the Chinese market. The financial model for the company has been updated to mirror these outcomes.
For the fiscal year 2024, H.C. Wainwright projects that CASI Pharmaceuticals will generate total revenues of approximately $20 million and incur a net loss of $2.56 per share.
The report also highlighted the company's current financial position, noting that it had $18 million in cash and cash equivalents at the end of the first quarter of 2024.
The analyst's outlook for CASI Pharmaceuticals remains positive, with the reiteration of a Buy rating, despite the lowered price target. The available funds are expected to be adequate for sustaining operations into the fourth quarter of 2024.
InvestingPro Insights
In light of the recent analysis by H.C. Wainwright, InvestingPro provides additional insights into CASI Pharmaceuticals' financial health and market performance. Despite the challenges faced by the company, including a significant year-over-year revenue decline, CASI holds a strong cash position relative to its debt. This aligns with the analyst's view that the company's funds should sustain operations well into the fourth quarter of 2024. Moreover, InvestingPro Tips suggest that analysts are expecting both net income and sales growth for CASI in the current year, offering a glimmer of optimism for the company's future.
InvestingPro Data reveals a market capitalization of $41.18 million and a negative P/E ratio, indicating the company is not currently profitable. However, the stock has experienced a significant return over the last week, with a 20.08% price total return, and even more so over the last month, at 26.8%. This volatility is reflected in the stock's high price volatility, as noted in InvestingPro Tips. CASI's price is currently at 37.38% of its 52-week high, with a previous close at $3.17. Investors looking for more detailed analytics and additional InvestingPro Tips can find them at InvestingPro, including tips that indicate the company does not pay a dividend and is trading at a low revenue valuation multiple. For those interested in a deeper dive, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 16 more InvestingPro Tips available that could further inform investment decisions regarding CASI Pharmaceuticals.
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