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Delcath Systems Braces for Financial Impact Amid Uncertain Tax Law Changes

Delcath Systems Braces for Financial Impact Amid Uncertain Tax Law Changes

Delcath Systems, Inc. (DCTH) has disclosed a new risk, in the Taxation & Government Incentives category.

Delcath Systems, Inc. faces significant business risks due to potential changes in tax laws or regulations, which may be enacted or revised unfavorably. Such changes could have a detrimental impact on the company’s operations and financial health, as exemplified by the Tax Cuts and Jobs Act’s modification on research and development expense deductions. The uncertainty surrounding state conformity with federal tax laws and future tax reforms further exacerbates the risk, threatening Delcath’s deferred tax assets and potentially increasing its U.S. tax expenses. This evolving tax landscape underscores the need for Delcath to remain vigilant and adaptable to mitigate potential adverse effects on its financial performance.

The average DCTH stock price target is $21.67, implying 63.92% upside potential.

To learn more about Delcath Systems, Inc.’s risk factors, click here.

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