In a report released yesterday, Naz Rahman from Maxim Group reiterated a Buy rating on Assertio Therapeutics (ASRT – Research Report), with a price target of $3.00.
Naz Rahman has given his Buy rating due to a combination of factors that highlight Assertio Therapeutics’ strategic positioning and potential for growth. Despite a mixed fourth quarter, where revenue surpassed expectations but EBITDA fell short, the company demonstrated resilience by maintaining a strong cash position of $100.1 million, allowing it to self-finance without needing external funding in a volatile market. This financial stability is crucial as Assertio continues to focus on growth through acquisitions, particularly those that can synergize with its existing product, Rolvedon.
Furthermore, Assertio’s management has laid out a strategic plan for 2025, with a focus on net product sales and EBITDA guidance that, while conservative, reflects a realistic approach given current market conditions. The company’s commitment to acquiring mature and established products, coupled with its ability to generate cash, positions it well for potentially accretive transactions in the coming year. Additionally, the successful integration of Spectrum Pharmaceuticals and the launch of Rolvedon, which has already begun to offset revenue losses from Indocin going generic, underscore Assertio’s capability to adapt and thrive amidst industry challenges.
In another report released today, Alliance Global Partners also maintained a Buy rating on the stock with a $1.75 price target.