Avadel Pharmaceuticals initiated with a Buy at Deutsche Bank

Deutsche Bank analyst David Hoang initiated coverage of Avadel Pharmaceuticals (AVDL) with a Buy rating and $12 price target The shares have declined meaningfully since the April 2024 highs and are trading at levels not seen since February 2023, prior to the commercial launch of Lumryz, the analyst tells investors in a research note. The firm sees potential upside from current levels following the 25% selloff in January post the preliminary results for Q4 and revised guidance for fiscal 2025, both of which came in below Street expectations due to an increased discontinuation rate for Lumryz. Deutsche says Avadel is presently oversold, with the market valuation reflecting a “near-worst case scenario” in which Lumryz peak sales plateau at $200M.