🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Corcept shares target raised on positive trial data, holds Buy rating

EditorAhmed Abdulazez Abdulkadir
Published 04/06/2024, 13:34
CORT
-

Tuesday, Truist Securities has increased its price target for Corcept Therapeutics (NASDAQ:CORT) to $65 from the previous $44, while maintaining a Buy rating on the stock. This adjustment comes in the wake of recent developments shared by the company.

Corcept Therapeutics recently presented Phase 3 GRACE study data at the ENDO conference, which received a positive reception. Additionally, the company conducted a Key Opinion Leader (KOL) panel that focused on the management of hyperglycemia caused by hypercortisolism. The insights from this panel were particularly well-received by attending endocrinologists.

In response to these events, Truist Securities has revised its diabetes model for Corcept, which contributed to the uplift in the price target. Although the model's assumptions are described as highly conservative, they serve as a foundation for the new valuation.

The firm also anticipates further developments from Corcept Therapeutics later this week at the HiF Conference in Philadelphia, where more detailed data from the trials is expected to be unveiled. Following this, late breaker presentations at the American Diabetes Association (ADA) meeting are also on the horizon.

Truist Securities reaffirmed its Buy rating, signaling confidence in Corcept's ongoing research and its potential impact on the company's stock value. The upcoming presentations are expected to provide additional insights that could further influence Corcept's market position.

In other recent news, Corcept Therapeutics has been making significant strides in the pharmaceutical industry. The company recently reported positive results from a phase 3 trial of its drug, relacorilant, designed to treat Cushing's syndrome. The trial met its primary endpoint, showing significant improvements in controlling hypertension and hyperglycemia. These promising results have paved the way for Corcept to submit a New Drug Application, anticipated in the third quarter of this year.

In addition to its clinical trials, Corcept Therapeutics has also reported a robust financial performance for the first quarter of 2024. The company announced total revenues of nearly $147 million and a net profit of $0.25 per diluted share, surpassing consensus estimates. This strong performance led to an upward revision of the company's revenue guidance for the year, now estimated between $620 million and $650 million.

Moreover, H.C. Wainwright has increased its price target for Corcept Therapeutics, while maintaining a Buy rating on the stock. This decision reflects the firm's positive expectations for Corcept's financial prospects, particularly in light of the company's recent performance and upward revision of its full-year revenue guidance.

InvestingPro Insights

In light of the recent price target increase by Truist Securities for Corcept Therapeutics, current InvestingPro data provides a deeper financial perspective. With a market capitalization of $3.26 billion and a Price/Earnings (P/E) ratio of 27.34, Corcept's valuation reflects a balance between its earnings and investor expectations. Notably, the company's P/E ratio has adjusted slightly to 27.8 over the last twelve months as of Q1 2024, indicating a stable earnings outlook.

Corcept's financial health is further underscored by a robust revenue growth of 26.51% over the last twelve months and an impressive gross profit margin of 98.54%, suggesting efficient operations and strong market demand for its products. Additionally, the company boasts a significant return on assets of 18.53%, highlighting its ability to generate profits from its asset base.

From an investment standpoint, two InvestingPro Tips particularly stand out: Corcept holds more cash than debt on its balance sheet, and analysts have revised their earnings upwards for the upcoming period. These factors, combined with a strong one-month price total return of 27.65%, paint a picture of a company with solid fundamentals and positive market momentum. For those interested in exploring more insights, InvestingPro offers additional tips on Corcept Therapeutics at https://www.investing.com/pro/CORT. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover the 11 additional tips available that could help inform your investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.