On Wednesday, H.C. Wainwright maintained a Buy rating on ASP Isotopes Inc. (NASDAQ: ASPI) and increased the share price target to $5.50 from the previous $5.25. The adjustment follows the company's recent filing of its annual financial results.
ASP Isotopes Inc. reported its 2023 financial outcomes on April 10, revealing revenues of $0.4 million and a net loss of $16.3 million, or a loss of $0.49 per share. This reflects a widened net loss from the $4.9 million, or $0.18 per share, recorded in 2022. The increase in net loss is attributable to a spike in Selling, General and Administrative (SG&A) expenses to $15.4 million, up from $3.8 million the previous year.
Despite the increase in net loss, the firm reduced its Research and Development (R&D) expenditures by 40% year-over-year to $0.8 million, which provided some offset to the rising SG&A costs. ASP Isotopes' revenue stems from its sale of nuclear medical doses for PET scanning, a segment that was bolstered by the acquisition of a 51% stake in PET Labs Pharmaceuticals, a private entity, in October of the previous year.
Looking ahead, H.C. Wainwright anticipates that ASP Isotopes will continue to generate revenue. The firm emphasized the management's success in de-risking operations over the past year. The analyst's statement underscored the expectation of ongoing revenue generation and operational stability for the company.
InvestingPro Insights
Following H.C. Wainwright's optimistic outlook on ASP Isotopes Inc. (NASDAQ: ASPI), real-time data from InvestingPro provides additional context for investors. The company's market capitalization currently stands at $154.6 million. Despite not being profitable over the last twelve months, ASPI has experienced a high return over the last year, with a 371.18% one-year price total return. This impressive performance is supported by a strong three-month price total return of 101.57%.
InvestingPro Tips indicate that while ASPI operates with a moderate level of debt, it is trading at a high Price / Book multiple of 21.73 as of the last twelve months ending Q3 2023. Moreover, the company does not pay a dividend, which may be a consideration for income-focused investors. For those seeking a deeper analysis, InvestingPro offers additional tips and metrics on ASPI, which can be found at https://www.investing.com/pro/ASPI. Investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further insights to aid in their investment decisions. Currently, there are 7 additional InvestingPro Tips available for ASPI, providing a comprehensive view of the company's financial health and market performance.
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