Analyst David Martin PhD of Bloom Burton maintained a Buy rating on HLS Therapeutics Inc, with a price target of C$9.50.
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David Martin PhD has given his Buy rating due to a combination of factors that suggest potential growth for HLS Therapeutics Inc. Despite a recent decline in quarterly revenues, the company has shown resilience through strategic management and optimization of its infrastructure, which has kept EBITDA in line with expectations. This financial stability is crucial as the company prepares for the anticipated launch of Nexletol and Nexlezet, two drugs projected to significantly increase HLS’s revenue streams.
Moreover, while Canadian sales of Clozaril faced challenges due to inventory reductions and market shifts, the company has seen positive developments in other areas. The growth in Vascepa prescriptions, despite currency fluctuations and ordering patterns, indicates a strong underlying demand that is expected to manifest in future quarters. Additionally, the U.S. market for Clozaril has shown slight growth, supported by specialty pharmacy sales and patient programs. These factors, combined with a strategic focus on expanding into new markets, underpin the Buy rating and the optimistic price target of C$9.50.
HLS’s price has also changed slightly for the past six months – from C$4.810 to C$4.950, which is a 2.91% increase.