Analyst Faisal Khurshid of Leerink Partners reiterated a Buy rating on MannKind (MNKD – Research Report), reducing the price target to $7.00.
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Faisal Khurshid has given his Buy rating due to a combination of factors that highlight MannKind’s potential for long-term growth despite some near-term uncertainties. He believes the stock is currently undervalued and sees MannKind as a unique player in the SMID-cap biotech sector, primarily due to its cash flow positive status from Tyvaso DPI royalties and modest Afrezza sales. The company’s focus on inhaled therapies for orphan respiratory indications presents multiple opportunities for success.
Khushid acknowledges the risks associated with the Tyvaso DPI royalty stream, particularly with the recent approval of Yutrepia as a competitor. However, he remains optimistic about the commercial trajectory of Tyvaso DPI in the near term and its potential impact on MannKind’s financials. The upcoming results from the Phase 3 TETON-2 trial of Tyvaso in IPF are seen as a significant catalyst for the stock, and MannKind’s efforts in de-leveraging and advancing its pipeline are viewed positively, reinforcing the Buy rating.
According to TipRanks, Khurshid is a 5-star analyst with an average return of 25.5% and a 50.57% success rate. Khurshid covers the Healthcare sector, focusing on stocks such as Spyre Therapeutics, Immunic, and Trevi Therapeutics.
In another report released on June 16, Wedbush also assigned a Buy rating to the stock with a $11.00 price target.