On Friday, H.C. Wainwright updated its outlook on TG Therapeutics (NASDAQ:TGTX), raising the price target to $49.00 from the previous $45.00, while maintaining a Buy rating on the shares. The firm's analyst cited the company's first-quarter revenue and financial metrics as the basis for the revised target.
TG Therapeutics reported first-quarter 2024 revenues of $63.5 million, surpassing both the firm's estimate of $57.5 million and the consensus of $54.6 million. Despite this, the company's GAAP earnings per share (EPS) for the quarter came in at a loss of ($0.07), which was below the analyst's projection of a ($0.02) loss. On a non-GAAP basis, the EPS for the same period was a loss of ($0.01), against expectations of a $0.05 gain.
The company's research and development (R&D) expenses, excluding non-cash compensation, increased to $30.3 million for the first quarter of 2024, up from $14.3 million in the first quarter of 2023. Similarly, selling, general, and administrative (SG&A) expenses, also excluding non-cash compensation, rose to $27.7 million from $22.8 million in the year-ago quarter.
Looking forward, H.C. Wainwright estimates TG Therapeutics' full-year 2024 revenue to be $296.0 million with a GAAP EPS forecast of ($0.01). The firm also forecasts a non-GAAP EPS of $0.24 for the full year. As of March 31, 2024, TG Therapeutics reported having $209.8 million in cash reserves. The company expects that its current cash position will suffice to fund operations until it achieves a positive cash flow.
The analyst reiterated a Buy rating, reflecting confidence in the company's financial trajectory and operational funding.
InvestingPro Insights
The recent update by H.C. Wainwright on TG Therapeutics (NASDAQ:TGTX) reflects a positive stance on the company's financial performance and future prospects. To provide additional context, InvestingPro data shows that TG Therapeutics has a market capitalization of $2.38 billion and is trading at a P/E ratio of 56.86, which adjusts to 57.75 for the last twelve months as of Q1 2024. The company's revenue growth has been impressive, with a surge of over 3275% in the last twelve months as of Q1 2024, and a gross profit margin standing at a robust 93.53% for the same period.
Two InvestingPro Tips that may be of interest to investors are the company's "impressive gross profit margins" and its "significant return over the last week," which was 21.9%. These metrics suggest that TG Therapeutics is managing its cost of goods sold effectively and that there has been recent investor optimism in the stock's performance. Additionally, the company has been trading at a low P/E ratio relative to near-term earnings growth, which might attract investors looking for growth at a reasonable price.
For those looking to delve deeper into TG Therapeutics' financials and stock performance, additional InvestingPro Tips provide valuable insights. There are 4 more tips available on InvestingPro that could help investors make an informed decision. To explore these tips and more, visit https://www.investing.com/pro/TGTX and don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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