Analyst Jason McCarthy from Maxim Group reiterated a Buy rating on Zevra Therapeutics and keeping the price target at $25.00.
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Jason McCarthy has given his Buy rating due to a combination of factors that highlight the potential of Zevra Therapeutics. The company reported strong second-quarter results, with net revenue surpassing both consensus and internal forecasts, primarily driven by the impressive performance of Miplyffa. Despite challenges with Olpruva, which led to a significant impairment charge, the overall financial health of the company remains robust, supported by a substantial cash reserve.
Furthermore, the acquisition of assets from Acer Therapeutics, including Olpruva, was seen as a strategic move with limited downside risk and potential for future growth. The approval and commercial success of Miplyffa, especially as the first FDA-approved therapy for Niemann-Pick disease type C, underscores the company’s innovative capabilities and market potential. McCarthy views the current dip in share price as an overreaction, maintaining a positive outlook on the company’s future prospects and reiterating the Buy recommendation.