Chimerix (CMRX – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Soumit Roy from JonesTrading maintained a Hold rating on the stock and has a $8.55 price target.
Soumit Roy’s rating is based on a combination of factors that reflect the current financial standing and future projections for Chimerix. One key aspect influencing the Hold rating is the recent correction in the earnings per share estimate for the fourth quarter of 2024, which was adjusted from a positive to a negative figure. This revision indicates potential challenges in the company’s profitability outlook.
Additionally, the financial metrics such as the estimated fiscal year cash burn and the company’s cash reserves were considered. With a significant cash burn projected at $98 million and cash reserves of $152 million, the company has a limited runway to achieve profitability or secure additional funding. These financial constraints, coupled with the unchanged price target, suggest a cautious approach, leading to the Hold recommendation.
In another report released on March 5, H.C. Wainwright also downgraded the stock to a Hold with a $8.55 price target.