Tuesday, Leap Therapeutics (NASDAQ:LPTX), a biopharmaceutical company, saw its stock price target reduced from $7.00 to $5.50 by H.C. Wainwright, although the firm continued to recommend a Buy rating for the stock. The revision followed the company's first-quarter financial report for 2024, which included an update on its corporate activities.
Leap Therapeutics disclosed its financial outcomes for the first quarter of 2024 on Monday, reporting a net loss of $0.51 per share. This was narrower than the anticipated consensus net loss of $0.59 per share. The company's financials for the quarter showed no revenue, which was consistent with market expectations.
The adjustment in the price target was attributed to changes in the firm's financial model based on Leap's reported financials. For the year 2024, the analyst projected that the company would not generate any revenue and would incur a net loss of $1.53 per share.
The forecast for the launch of Leap's therapeutic candidate, DKN-01, was pushed back to the first quarter of 2027, a delay from the previously anticipated first quarter of 2025. This shift has also postponed the associated operational expenses that would be incurred for the drug's commercialization.
Additionally, the revised price target takes into account the dilution effect from a recent fundraising effort by Leap Therapeutics. The analyst's updated 12-month price target reflects these factors, resulting in a lower projection of $5.50 per diluted share, down from the earlier estimate of $7.00 per share.
InvestingPro Insights
As Leap Therapeutics navigates the challenges of drug development and financial sustainability, recent data from InvestingPro provides a nuanced view of the company's current position. The market capitalization of Leap Therapeutics stands at $108.29 million, indicating its size within the biopharmaceutical sector. Investors tracking the company's performance should note the substantial 81.41% price increase over the last six months, despite a recent downturn with a 7.82% drop in the past week. This volatility is a critical factor for stakeholders to consider.
Two InvestingPro Tips that may be particularly relevant for investors are that Leap Therapeutics holds more cash than debt on its balance sheet, which can be a sign of financial stability, and that the company's liquid assets exceed its short-term obligations, suggesting it has the liquidity to meet immediate financial needs. However, it's important to balance this with the fact that analysts do not anticipate the company will be profitable this year and that it has been quickly burning through cash.
For those interested in a deeper dive into Leap Therapeutics' financial health and future prospects, there are additional InvestingPro Tips available at https://www.investing.com/pro/LPTX. To gain full access, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With more tips at hand, investors can make more informed decisions regarding their interest in Leap Therapeutics.
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