Piper Sandler cuts Avadel Pharmaceuticals price target, says staying bullish

Piper Sandler lowered the firm’s price target on Avadel Pharmaceuticals (AVDL) to $13 from $24 and keeps an Overweight rating on the shares after pre-announcing flat Q4 Lumryz sales and providing 2025 sales guidance for the product that was “well below consensus.” Piper told investors that though not a good look for Avadel, Lumryz is growing, and should continue to grow significantly, at least until the orexin 2 receptor agonists start to have an impact late in the decade and into the 2030’s. The firm contends this does create a terminal value question mark, though Lumryz does have intellectual property runway into 2042. Piper added it believes the backdrop points to value recovery.