Protara Therapeutics (TARA) AI Stock Analysis

• Market Cap: $118.06M
• Dividend Yield: N/A
• Average Volume (3M): 390.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: N/A
• EPS Growth: 32.58%
• Country: US
• Employees: 28
• Sector: Healthcare
• Sector Strength: 38
• Industry: Biotechnology
• EPS (TTM): -0.29
• Shares Outstanding: 38,581,863
• 10 Day Avg. Volume: 223,456
• 30 Day Avg. Volume: 390,325
• PEG Ratio: -0.11
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.21
• Enterprise Value/Market Cap: 0.36
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -0.54
• 1Y Price Target: $19.50
• Price Target Upside: 537.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 39 Underperform
• Price Target: ―

Protara Therapeutics faces considerable challenges typical in early-stage biotech, such as no revenue and persistent cash outflows. However, the strong equity and low debt levels provide some stability. The recent positive trial results are promising, but the stock remains high-risk due to its financial and operational metrics.

Positive Factors

Market Opportunity

There are three major catalysts expected, which could present significant market opportunities for Protara.

Safety Profile

Protara's TARA-002 has shown a similar efficacy and slightly better safety profile compared to BCG in the Phase 2 ADVANCED-2 trial in BCG-Naive NMIBC patients.

Negative Factors

Stock Valuation

Protara has three diverse, late-stage clinical programs, two of which are fairly de-risked, but the stock is trading at cash value.

Supply Issues

Persistent supply shortages are restricting access to BCG for patients worldwide over the last 10+ years.

Protara Therapeutics Business Overview & Revenue Model

Company Description

Protara Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the identifying and advancing transformative therapies for the treatment of cancer and rare diseases. The company's lead program is TARA-002, an investigational cell therapy for the treatment of lymphatic malformations. It also develops intravenous choline chloride, an investigational phospholipid substrate replacement therapy for the treatment of intestinal failure associated liver disease. The company was formerly known as ArTara Therapeutics, Inc. and changed its name to Protara Therapeutics, Inc. in May 2020. Protara Therapeutics, Inc. is headquartered in New York, New York.

How the Company Makes Money

Protara Therapeutics primarily makes money through the development and commercialization of its investigational therapies. The company's revenue model is centered around advancing its clinical-stage products through the regulatory approval process to eventually bring them to market. Key revenue streams include potential future sales of approved products, licensing agreements, and partnerships with other pharmaceutical companies. Additionally, the company may receive milestone payments and royalties if its therapies are successfully commercialized by partners. Significant factors contributing to its earnings include the successful advancement of its clinical trials, favorable regulatory outcomes, and strategic collaborations that provide funding and resources for product development.

Protara Therapeutics Financial Statement Overview

Summary

Protara Therapeutics exhibits typical financials of an early-stage biotech firm, with no revenue and significant R&D expenses. The strong equity position and low debt offer some stability, but the lack of revenue and ongoing cash burn are critical challenges.

Income Statement

Protara Therapeutics has consistently reported zero revenue over the years, which is typical for early-stage biotechnology firms focused on research and development. However, the absence of revenue and persistent negative EBIT and net income highlight significant challenges in achieving profitability.

Balance Sheet

The company maintains a strong equity position with minimal debt, reflected in a low debt-to-equity ratio. This indicates financial stability and a low risk of insolvency. However, the ongoing cash burn without revenue generation poses potential risks for long-term sustainability.

Cash Flow

Negative operating and free cash flows are consistent with high R&D expenditure typical for biotechnology firms. However, the reliance on financing activities to sustain operations raises concerns about future funding needs and dilution risks.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	-341.00K	-247.00K	-1.17M	-196.00K
EBITDA	-49.15M	-43.27M	-64.57M	-46.09M	-33.78M
Net Income	-44.60M	-40.42M	-64.81M	-47.13M	-33.51M
Balance Sheet
Total Assets	181.45M	78.95M	113.29M	172.60M	203.16M
Cash, Cash Equivalents and Short-Term Investments	170.29M	65.58M	84.37M	91.23M	168.60M
Total Debt	4.48M	5.47M	6.38M	7.24M	1.09M
Total Liabilities	14.32M	10.63M	11.21M	10.68M	3.91M
Stockholders Equity	167.13M	68.32M	102.08M	161.91M	199.24M
Cash Flow
Free Cash Flow	-35.87M	-37.60M	-26.58M	-35.10M	-24.29M
Operating Cash Flow	-35.81M	-37.56M	-26.46M	-34.50M	-23.41M
Investing Cash Flow	19.16M	53.11M	14.95M	-98.19M	2.83M
Financing Cash Flow	139.87M	-91.00K	-90.00K	-228.00K	189.40M

Protara Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TARA, the sentiment is Negative. The current price of 3.06 is below the 20-day moving average (MA) of 3.18, below the 50-day MA of 3.13, and below the 200-day MA of 3.73, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 45.05 is Neutral, neither overbought nor oversold. The STOCH value of 11.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TARA.

Protara Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLX	62 Neutral	$116.23M	34.76	10.42%	―	0.18%	-55.15%
Sector *	51 Neutral	$7.35B	0.50	-65.61%	2.47%	15.28%	1.44%
OBIO	48 Neutral	$94.29M	―	-179.12%	―	30.23%	-21.32%
ZURA	43 Neutral	$92.81M	―	-62.34%	―	―	86.65%
TARA	39 Underperform	$118.06M	―	-41.88%	―	―	32.58%
SKYE	38 Underperform	$105.66M	―	-47.27%	―	―	87.22%
HURA	36 Underperform	$115.44M	―	-244.16%	―	―	77.12%

Protara Therapeutics Corporate Events

Protara Therapeutics Reports Positive Phase 2 Trial Results

On April 26, 2025, Protara Therapeutics announced positive interim results from its Phase 2 ADVANCED-2 trial of TARA-002 in high-risk NMIBC patients. The trial demonstrated a 100% complete response rate at any time in BCG-Unresponsive patients and a 76% rate in BCG-Naïve patients, with favorable safety and tolerability profiles. These results, presented at the 2025 American Urological Association Annual Meeting, suggest TARA-002’s potential to significantly impact clinical practice by providing an effective alternative to radical cystectomy for NMIBC patients.

Spark’s Take on TARA Stock

According to Spark, TipRanks’ AI Analyst, TARA is a Underperform.

Protara Therapeutics’ stock score reflects the significant challenges faced by early-stage biotech companies. The absence of revenue and persistent cash outflows are major concerns, offset slightly by a strong equity position and low debt levels. Technical indicators suggest neutral momentum, while valuation metrics signal the typical struggles of a company focused on R&D without profitability. Overall, while the company may have potential, the current financial and operational metrics indicate high risk.

To see Spark’s full report on TARA stock, click here.