Puma Biotechnology: Hold Rating Amidst Flat Sales Growth and Uncertain Drug Prospects

Marc Frahm, an analyst from TD Cowen, maintained the Hold rating on Puma Biotechnology (PBYI – Research Report). The associated price target is $4.00.

Marc Frahm has given his Hold rating due to a combination of factors surrounding Puma Biotechnology’s financial and operational outlook. The company reported higher-than-expected sales for its drug Nerlynx, which contributed to a positive net income for the quarter. However, the overall sales growth is projected to remain flat in the coming years, which tempers enthusiasm for the stock’s potential upside.
Additionally, while Puma’s ongoing clinical trials for Alisertib show some promise, the lack of immediate confidence in the drug’s success contributes to the cautious stance. The anticipated increase in research and development expenses, coupled with stable but not growing revenue projections, further supports the Hold rating as the company navigates these uncertainties.

Frahm covers the Healthcare sector, focusing on stocks such as Incyte, Agios Pharma, and Cardiff Oncology. According to TipRanks, Frahm has an average return of 8.5% and a 41.44% success rate on recommended stocks.