Delcath Systems: Strong Revenue Growth and Strategic Expansion Drive Buy Rating

Analyst Swayampakula Ramakanth from H.C. Wainwright maintained a Buy rating on Delcath Systems (DCTH – Research Report) and keeping the price target at $24.00.

Swayampakula Ramakanth has given his Buy rating due to a combination of factors including Delcath Systems’ strong revenue performance and strategic growth initiatives. The company reported a significant increase in revenue for the first quarter of 2025, largely driven by the clinical adoption of HEPZATO, which contributed $18 million. This growth is supported by the activation of multiple treatment centers and plans to expand sales regions, indicating a robust market presence.
Furthermore, Delcath is pursuing label expansion for HEPZATO in larger indications, with plans to initiate Phase 2 studies for liver-dominant metastatic colorectal and breast cancers. These studies have the potential to significantly increase the market size for HEPZATO. The company’s financial health is also strong, with sufficient cash reserves to support ongoing operations. The valuation analysis, based on projected future revenues and a risk-adjusted net present value, supports a 12-month price target of $24, reinforcing the Buy recommendation.