Analyst Joseph Stringer from Needham maintained a Buy rating on Phathom Pharmaceuticals (PHAT – Research Report) and keeping the price target at $28.00.
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Joseph Stringer has given his Buy rating due to a combination of factors influencing Phathom Pharmaceuticals. The company reported first-quarter revenue that was slightly below expectations, but management has announced significant cost-cutting measures, including a reduction in operating expenses by $60-70 million, which is anticipated to lead to non-GAAP operating profitability by 2026.
Additionally, while there was no specific sales guidance provided, the management expressed confidence in meeting the consensus revenue estimates for the year. A key upcoming event is the FDA’s decision on the Citizens’ Petition, expected in early June, which is seen as a significant catalyst for the stock. These strategic initiatives and potential regulatory developments contribute to the positive outlook reflected in the Buy rating.
Stringer covers the Healthcare sector, focusing on stocks such as Phathom Pharmaceuticals, Alnylam Pharma, and Ionis Pharmaceuticals. According to TipRanks, Stringer has an average return of -5.7% and a 35.00% success rate on recommended stocks.