Geron Inc.: Buy Rating Maintained Despite Downgraded Financial Projections

Geron (GERN – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Tara Bancroft from TD Cowen maintained a Buy rating on the stock and has a $4.00 price target.

Tara Bancroft’s rating is based on several considerations, despite the adjustments made to Geron’s financial projections. The price target for Geron’s stock was revised to $4.00 from the previous $5.00, reflecting updated revenue estimates for their product, Rytelo. The anticipated revenue for the first quarter was adjusted down to $49 million from an earlier estimate of $54 million, and the full-year revenue projection was also reduced. Consequently, the earnings per share estimate for the first quarter was revised to a loss of $0.03 from a previous estimate of breaking even.
Despite these downward revisions, the Buy rating is maintained, indicating confidence in the company’s long-term potential. The decision to uphold the Buy rating suggests that the analyst sees value in Geron’s future prospects, possibly due to strategic initiatives or market opportunities that could drive growth beyond the near-term financial adjustments.

In another report released on April 21, Leerink Partners also reiterated a Buy rating on the stock with a $3.00 price target.