Canaccord Genuity analyst John Newman maintained a Buy rating on Delcath Systems (DCTH – Research Report) yesterday and set a price target of $21.00.
John Newman’s rating is based on several positive developments surrounding Delcath Systems. The company’s Hepzato product has shown promising revenue growth, surpassing market expectations for both the fourth quarter of 2024 and the full fiscal year. This growth is anticipated to continue as more centers become active, with a target of 30 centers by the end of 2025, which appears achievable given the current pace of new site activations.
Additionally, the upcoming CHOPIN trial data, expected in the second half of 2025, presents a significant opportunity for the stock. This trial, which combines Hepzato with checkpoint inhibitors, aims to demonstrate a one-year progression-free survival as a primary endpoint. The potential integration of Hepzato into the standard of care for cancer treatment could drive further adoption and revenue. Furthermore, Delcath’s expansion into additional cancer indications, such as liver-dominant colorectal cancer and breast cancer, represents a substantial long-term revenue opportunity. These factors contribute to the Buy rating, with a price target of $21.
In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $22.00 price target.
DCTH’s price has also changed moderately for the past six months – from $9.670 to $13.220, which is a 36.71% increase.