Analyst Mitchell Kapoor of H.C. Wainwright reiterated a Buy rating on Rani Therapeutics Holdings (RANI – Research Report), retaining the price target of $9.00.
Mitchell Kapoor has given his Buy rating due to a combination of factors, including Rani Therapeutics Holdings’ financial position and upcoming clinical trials. The company recently reported its 4Q24 and full-year 2024 financial results, which showed a net loss slightly higher than previous estimates. However, Rani’s cash reserves are projected to support operations into the third quarter of 2025 without additional funding, which provides a stable financial outlook.
Another significant factor influencing the Buy rating is the anticipated initiation of the RT-114 Phase 1 trial targeting obesity. This trial will explore the efficacy of the RaniPill capsule, which delivers a dual-agonist for non-diabetic obesity. The successful execution of this trial could pave the way for further clinical developments and market opportunities. Additionally, the valuation of Rani is supported by a discounted cash flow analysis, resulting in a firm value of $830 million and a 12-month price target of $9 per share. Despite potential risks such as negative clinical outcomes or market uptake challenges, the overall outlook remains positive.
Kapoor covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, Halozyme, and Tyra Bioscience. According to TipRanks, Kapoor has an average return of -23.2% and a 27.39% success rate on recommended stocks.
In another report released on April 1, Canaccord Genuity also reiterated a Buy rating on the stock with a $9.00 price target.