TD Cowen analyst Marc Frahm maintained a Hold rating on Puma Biotechnology yesterday and set a price target of $4.00.
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Marc Frahm has given his Hold rating due to a combination of factors influencing Puma Biotechnology’s financial outlook. The company’s Q2 performance showed Nerlynx sales aligning closely with market expectations, achieving $49 million, which was in line with the consensus estimate of $48 million. This performance resulted in a net income of $6 million, reflecting stable but not exceptional growth.
Despite the ongoing trials for alisertib in HER2- HR+ mBC and SCLC, there is a lack of confidence in the potential outcomes of these trials, which contributes to the cautious stance. Additionally, while Puma has reiterated its revenue guidance for FY2025, the need for significant revenue acceleration in the latter part of the year to meet these targets adds an element of uncertainty. These factors collectively suggest a balanced risk-reward scenario, justifying the Hold rating.
Frahm covers the Healthcare sector, focusing on stocks such as Incyte, Agios Pharma, and Scholar Rock Holding. According to TipRanks, Frahm has an average return of 6.0% and a 42.90% success rate on recommended stocks.