Needham analyst Serge Belanger has maintained their neutral stance on VRCA stock, giving a Hold rating today.
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Serge Belanger has given his Hold rating due to a combination of factors surrounding Verrica Pharmaceuticals’ current financial and operational status. The company’s recent quarterly sales for Ycanth showed a positive increase, surpassing market expectations, which indicates a promising trend in product uptake. However, despite this growth, the company is still not profitable, and there are concerns about its ability to sustain operations in the long term without securing additional funding or partnerships.
Moreover, while Verrica has managed to secure non-dilutive financing to support its operations through 2025 and into 2026, there remains a ‘going concern’ regarding its financial stability. The company is also planning to advance its VP-315 program, contingent on obtaining sufficient financing. These uncertainties contribute to the Hold rating, as the company’s future financial health and ability to meet its debt obligations remain in question.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $6.50 price target.