On Friday, Truist Securities kept its Buy rating and $21 price target for Perspective Therapeutics Inc (NYSE:CATX). They believe recent investor worries about dosing present a buying opportunity, as they think the company’s melanoma treatment is undervalued.
Truist estimates the potential sales for the melanoma treatment could be around $170 million to $850 million. Initial data from the melanoma study suggests lower doses might lead to stronger antitumor responses when paired with PD1 inhibitors. The Safety Monitoring Committee has advised further testing of reduced doses.
Truist is awaiting more details on future melanoma data and dosing strategies, as well as data from VMT-alpha-NET trials expected in late 2024. However, the analyst warns that effects seen in melanoma might not apply to neuroendocrine tumors (NETs).
Recently, Perspective Therapeutics underwent executive changes and made a sales agreement potentially worth $250 million in common stock. They also plan to expand a study cohort from 7 to 47 participants and raised $80 million after a reverse stock split. RBC Capital and Oppenheimer adjusted their stock targets based on these changes. Truist Securities gave the stock a Buy rating, noting strong potential for the company’s main products, which could achieve about $500 million in peak sales.
InvestingPro data complements Truist’s outlook, noting that even though CATX is currently unprofitable with a -15.64 P/E ratio, it had a 390.74% total return last year, beating market averages. Although a sales decline is expected this year, CATX holds more cash than debt, giving it financial flexibility for development. InvestingPro provides further analysis on CATX’s financial health and market position.
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