Wainwright maintained its Buy rating on Lumos Pharma (NASDAQ:LUMO), with a steady price target of $28.00. The firm's projections for the third quarter of 2024 include a revenue estimate of $0.5 million and an EPS (Earnings Per Share) of ($0.93). For the full year 2024, the revenue forecast stands at $2.1 million.
The firm has revised its FY24 EPS estimate downward to ($4.13) from the previous ($2.53). This adjustment comes after Lumos Pharma reported having cash and equivalents totaling $16.8 million as of June 30, 2024. According to the company's management, these funds are expected to be adequate to support operations into the first quarter of 2025.
Lumos Pharma has indicated the need for additional capital to conduct a Phase 3 trial for its drug candidate, LUM-201. Meanwhile, the company is actively exploring strategic options to enhance shareholder value and further the development of LUM-201. The reiteration of the Buy rating and the $28 price target reflects a continued positive outlook on the company's prospects.
In other recent news, Lumos Pharma has been a subject of interest for investors due to several significant developments. The company recently received a Buy rating from EF Hutton, based on an evaluation of its potential across multiple indications. The firm set a price target for Lumos Pharma at $16.00, reflecting an optimistic view of the company's growth prospects.
This rating was based on a series of financial models, including Free Cash Flow to the firm (FCFF), discounted EPS (dEPS), and sum-of-the-parts (SOP) models. EF Hutton anticipates that Lumos Pharma will seek additional capital, a factor that has been included in the projected share count.
Simultaneously, Lumos Pharma has provided updates on its upcoming Phase 3 clinical trial for LUM-201, an oral therapeutic candidate targeting moderate pediatric growth hormone deficiency. The trial is set to commence in the second quarter of 2025, with an estimated budget ranging from $85 million to $100 million. The company reported a solid financial standing with $16.8 million in cash, cash equivalents, and short-term investments.
Lumos Pharma is exploring strategic opportunities with Piper Sandler and has attracted significant global interest. The company is also in discussions for strategic partnerships and potential additional financing.
InvestingPro Insights
Recent InvestingPro data provides additional context to H.C. Wainwright's analysis of Lumos Pharma (NASDAQ:LUMO). The company's market capitalization stands at $32.01 million, reflecting its current market valuation. Despite the firm's downward revision of the FY24 EPS estimate, InvestingPro Tips highlight that Lumos holds more cash than debt on its balance sheet, which aligns with the company's reported cash position and its ability to fund operations into Q1 2025.
However, the InvestingPro data shows a revenue decline of 33.27% over the last twelve months, with total revenue at $1.49 million. This trend supports analysts' anticipation of a sales decline in the current year, as noted in the InvestingPro Tips. The negative operating income of -$37.62 million and the lack of profitability over the last twelve months underscore the challenges Lumos faces, which may explain the need for additional capital for the Phase 3 trial of LUM-201.
On a positive note, Lumos has shown strong price performance, with a 69.83% return over the last three months and a 39.72% increase over the past six months. This price momentum could be reflecting market optimism about the company's strategic options and the potential of LUM-201.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Lumos Pharma, providing deeper insights into the company's financial health and market position.
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