In a report released today, Oren Livnat from H.C. Wainwright maintained a Buy rating on Pacira Pharmaceuticals (PCRX – Research Report), with a price target of $48.00.
Oren Livnat has given his Buy rating due to a combination of factors suggesting that Pacira Pharmaceuticals is currently undervalued and has significant growth potential. Livnat believes that the company’s 2025 revenue guidance is overly conservative, especially with the positive impact expected from the NOPAIN Act, which unbundles outpatient coverage for Exparel and has led to rapid commercial payer coverage. This, combined with a price increase for Exparel and additional tailwinds from other products like Zilretta and Iovera, suggests that the company’s growth prospects are stronger than currently reflected in the stock price.
Furthermore, Livnat points out that concerns over generic competition are overblown. Pacira has taken legal steps to protect its Exparel exclusivity, and management does not foresee a generic launch in the near future. Despite the stock’s recent rebound, Livnat sees the current enterprise value as misaligned with the company’s cash flow potential, projecting a significant increase in adjusted EBITDA and operating cash flow in the coming years. This mispricing, along with the potential for Exparel outperformance and pipeline developments, supports the Buy rating and a raised price target of $48.
According to TipRanks, Livnat is a 2-star analyst with an average return of 0.0% and a 41.53% success rate. Livnat covers the Healthcare sector, focusing on stocks such as Pacira Pharmaceuticals, Trevi Therapeutics, and Avadel Pharmaceuticals.