Analyst Jason Zemansky from Bank of America Securities reiterated a Sell rating on Esperion (ESPR – Research Report) and decreased the price target to $2.00 from $2.05.
Jason Zemansky has given his Sell rating due to a combination of factors affecting Esperion’s performance. Despite some positive aspects in the company’s recent earnings, such as the increase in total revenues and GAAP EPS, the US sales of bempedoic acid have consistently fallen short of expectations for three consecutive quarters. This underperformance in the US market is a significant concern, especially given the company’s ambitions to penetrate a large market of 70 million potential patients.
Moreover, Zemansky highlights the growing headwinds Esperion faces, including slowing US growth and declining revenue per script, which have been exacerbated by new Medicare contracts. The looming competition from other treatments, such as oral PCSK9s and CEPT, further complicates the company’s outlook. While Esperion is exploring new product combinations to drive growth, the uncertainty surrounding these initiatives and the broader market challenges lead Zemansky to maintain a cautious stance, resulting in a Sell rating.
ESPR’s price has also changed slightly for the past six months – from $1.820 to $1.770, which is a -2.75% drop .