Analyst James Orsborne of Stifel Nicolaus maintained a Hold rating on Shield Therapeutics (STX – Research Report), boosting the price target to p3.80.
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James Orsborne has given his Hold rating due to a combination of factors related to Shield Therapeutics’ recent performance and future outlook. The company showed an increase in Net Sales Price (NSP) in the fourth quarter of 2024, leading to revenues slightly surpassing expectations for the year. However, despite this positive shift in NSP, there was a decline in prescription growth, which poses concerns for the company’s growth trajectory, especially for its product, Accrufer.
Looking forward to 2025, while revenue forecasts have been adjusted upward, they remain conservative amidst uncertainties around maintaining and growing Accrufer’s sales. The firm’s ability to meet its cash-flow breakeven target by the end of 2025 is questioned, with the analyst expressing skepticism about achieving this goal until 2027. Although the recent cash injection from AOP Health provides some financial relief, the tight funding situation leaves little room for operational missteps. Accordingly, the Hold rating reflects a cautious stance, balancing positive financial management against the challenges of ensuring sustained prescription growth.
According to TipRanks, Orsborne is an analyst with an average return of -17.3% and a 17.86% success rate.