Delcath Systems price target lowered to $27 from $29 at Clear Street

Clear Street lowered the firm’s price target on Delcath Systems (DCTH) to $27 from $29 and keeps a Buy rating on the shares. The firm notes Delcath reported FY25 earnings, which were in line with the preliminary results announced earlier this year. Guidance was issued for at least $100M in sales for FY26, against consensus estimate of $111M, and R&D and SG&A are expected to increase by nearly 90% and nearly 50% to support label expansion and HEPZATO commercial footprint expansion, respectively, in 2026. Clear Street sees weakness in the stock today as “myopia on the 2026 guidance,” and notes that the increase in expenses should drive both growth in HEPZATO in the near term and label expansion in the long term, the two key drivers of its thesis.