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Edgewise Therapeutics maintains Overweight rating from Piper Sandler

EditorTanya Mishra
Published 17/09/2024, 11:48
EWTX
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Piper Sandler has maintained its Overweight rating and $48.00 price target on shares of Edgewise Therapeutics (NASDAQ: EWTX).


The firm's outlook coincides with the upcoming Heart Failure Society of America (HFSA) meeting set for September 27-30, where Edgewise Therapeutics is scheduled to present two poster presentations regarding its EDG-7500 program on September 28 and 29.


The content of these presentations will remain under embargo until the conference begins, as per the organizers' rules.


The anticipation around these presentations is high, as they are expected to be significant for Edgewise's stock performance. While it is unclear if the company will release top-line EDG-7500 data before the meeting, the presentations at HFSA are considered crucial.


Analysts are paying close attention to the potential impact of the data, particularly for single-dose oHCM patients with LVOT-G around 50% and less than 5% LVEF drops, which is seen as the benchmark for success in this context.


In other recent news, Edgewise Therapeutics has approved the 2024 Inducement Equity Incentive Plan by its Board of Directors. This plan, aimed at attracting new talent, reserves 2 million shares of common stock for new equity awards.


Meanwhile, Piper Sandler maintains an Overweight rating on Edgewise Therapeutics, with a price target of $48.00. The firm's confidence stems from several upcoming milestones, including the Phase 1 single ascending dose/multiple ascending dose trials for its drug candidate EDG-7500. Edgewise Therapeutics is also preparing for data readouts from its sevasemten programs in Phase 2 trials by the end of 2024.


InvestingPro Insights


As Edgewise Therapeutics (NASDAQ:EWTX) approaches its pivotal presentations at the Heart Failure Society of America (HFSA) meeting, a glance at the real-time data and InvestingPro Tips provides a broader financial context for investors. With a market capitalization of approximately $1.58 billion and a notable return of 193.3% over the last year, the company's financial health and stock performance are of particular interest. Among the key InvestingPro Tips, it is worth noting that Edgewise holds more cash than debt on its balance sheet, indicating a strong liquidity position which could be a strategic advantage in funding ongoing research and development. Additionally, the company's liquid assets exceed its short-term obligations, further underscoring its financial resilience.


However, analysts have tempered expectations with four analysts revising their earnings downwards for the upcoming period and the consensus view that the company will not be profitable this year. This is corroborated by the negative operating income of -$136.17 million and an EBITDA growth of -48.26% over the last twelve months as of Q2 2024. These figures suggest that while the company is experiencing significant growth in stock value, its profitability remains a challenge.


Investors may also find it relevant that Edgewise does not pay a dividend, which could influence investment decisions for those seeking income-generating stocks. For a more comprehensive analysis, there are additional InvestingPro Tips available, providing deeper insights into Edgewise's financials and market performance. For those keen on further details, visiting the InvestingPro platform can offer a more nuanced view of the company's prospects.

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

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