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Jefferies cuts Liquidia Technologies target to $23, maintains 'Buy'

Published 14/05/2024, 21:42
LQDA
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On Tuesday, Jefferies, a well-known investment firm, adjusted its price target for Liquidia Technologies (NASDAQ:LQDA), a biopharmaceutical company. The new price target is set at $23, down from the previous $25, while the firm sustains a Buy rating on the stock.

Liquidia Technologies is currently poised for the anticipated launch of Yutrepia as it awaits the FDA's decision on the drug's New Drug Application (NDA). The company continues to engage in research and development activities, focusing on generating further clinical data for Yutrepia and advancing the development of its L606 product.

The company has reported promising results from the open-label ASCENT study for Yutrepia in treating pulmonary hypertension associated with interstitial lung disease (PH-ILD). Expectations are set for the release of more data from this study in 2024. Additionally, Liquidia is preparing to present data on L606 at the American Thoracic Society (ATS) 2024 conference on May 22, with plans to commence a pivotal Phase 3 study for L606 within the same year.

The adjustment in the price target to $23 reflects changes in the company's operational expenses. Jefferies has factored in these "OpEx tweaks" in setting the new target, indicating a slight recalibration of expectations while still maintaining a positive outlook on the company's stock.

InvestingPro Insights

As Liquidia Technologies (NASDAQ:LQDA) gears up for pivotal moments in its drug development pipeline, real-time data from InvestingPro provides a broader financial context. The company's market capitalization stands at a robust $927.29 million, underscoring investor confidence despite the lack of profitability in the last twelve months. Analysts have noted that while sales are expected to grow this year, the company is not anticipated to be profitable within the same timeframe. This aligns with the adjusted P/E ratio of -11.94, indicating that the market is pricing in future growth rather than current earnings.

InvestingPro Data also reveals that Liquidia's revenue has grown by 9.75% over the last twelve months as of Q4 2023, suggesting a positive trajectory in its financial performance. Nevertheless, the company is trading at a high Price / Book multiple of 19.32, which might raise valuation concerns among investors. On a more positive note, Liquidia has experienced a significant price increase of 90.28% over the past six months, reflecting market optimism, potentially due to the progress in its clinical developments.

For those looking to delve deeper, InvestingPro offers additional insights, including 9 more InvestingPro Tips for Liquidia Technologies, accessible through the specialized platform. Interested readers can take advantage of the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, further enriching their investment strategy with comprehensive data and analysis.

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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