Cautious Hold Rating on Puma Biotechnology Amid Declining Sales and Uncertain Trial Outcomes

Analyst Marc Frahm of TD Cowen maintained a Hold rating on Puma Biotechnology (PBYI – Research Report), retaining the price target of $4.00.

Marc Frahm has given his Hold rating due to a combination of factors including Puma Biotechnology’s recent financial performance and ongoing clinical trials. The company’s Q1 Nerlynx sales of $43 million were in line with expectations, resulting in a net income of $3 million. However, the sales figures showed a decline compared to the previous quarter, which raises concerns about the sustainability of growth.
Additionally, while Puma’s ongoing trials, such as the Alisertib trial, show potential, the lack of confidence in the outcomes of these trials contributes to the Hold rating. The company’s guidance for FY 2025 appears optimistic, especially given the aggressive revenue growth targets for Q2. These factors combined suggest a cautious approach, leading to the Hold recommendation by Marc Frahm.

According to TipRanks, Frahm is a 3-star analyst with an average return of 2.6% and a 38.68% success rate. Frahm covers the Healthcare sector, focusing on stocks such as Incyte, Xilio Therapeutics, and Janux Therapeutics Inc.