On Friday, Piper Sandler adjusted its price target on shares of Indivior (NASDAQ: INDV), increasing it to $16.00 from the previous $15.00, while maintaining an Overweight rating on the stock. The revised target comes after Indivior reported its third-quarter results, which met expectations for revenue after considering divestitures and exceeded projections on the bottom line.
Notably, the company has kept its revenue guidance steady but boosted its operating profit growth outlook by 100 basis points.
The company's C&V business, which is the largest segment and key growth driver, delivered results that fell slightly below expectations. This underperformance has had a negative impact on the stock's value today.
Despite this, Piper Sandler advises investors to view the current dip in the stock's price as an opportunity. The firm suggests that the volatility seen in contract manufacturer results, such as those of Indivior's C&V business this quarter, is to be expected.
Piper Sandler remains optimistic about Indivior's performance in the latter half of the year. The firm anticipates an uplift from anticipated improvements in various areas, including PFA, mitral, and tricuspid results. These factors contribute to the firm's positive outlook and recommendation for investors to either initiate or increase their holdings in Indivior while the stock is experiencing a high single-digit percentage pullback.
The analyst from Piper Sandler reiterated support for Indivior, emphasizing that the current drop in share price presents a favorable buying opportunity. The firm's Overweight rating is a signal of confidence in the stock's potential for future growth and performance.
In other recent news, Indivior has reported preliminary net revenue of $302 million to $309 million for Q3 2024, a 13% increase compared to the same period in 2023. However, due to increased competition, the company has lowered its full-year 2024 Sublocade net revenue forecast to $725 million to $745 million.
The FDA has granted Priority Review for a Prior Approval Supplement (PAS) for Sublocade, potentially improving treatment options. Additionally, Indivior secured an $8.7 million order from the Biomedical Advanced Research and Development Authority (BARDA) for Opvee, a medication designed to reverse opioid overdoses.
Craig-Hallum reduced Indivior's stock price target from $24.00 to $20.00, maintaining its Buy rating. Despite these adjustments, Craig-Hallum has expressed belief in the company's resilience and potential growth. These are recent developments investors should consider when evaluating Indivior's financial health.
InvestingPro Insights
Indivior's recent financial performance and market position offer interesting insights for investors. According to InvestingPro data, the company's revenue growth stands at 13.44% for the last twelve months as of Q3 2024, with a robust gross profit margin of 82.4%. This aligns with Piper Sandler's positive outlook on the company's future performance.
An InvestingPro Tip highlights that Indivior's net income is expected to grow this year, which supports the analyst's optimistic stance on the company's prospects. Additionally, the company operates with a moderate level of debt, potentially providing financial flexibility for future growth initiatives.
However, investors should note that the stock has taken a significant hit over the last six months, with a price total return of -49.16% during that period. This recent pullback aligns with Piper Sandler's view that the current dip presents a buying opportunity for investors.
For those considering Indivior's stock, it's worth noting that InvestingPro offers 11 additional tips, providing a more comprehensive analysis of the company's financial health and market position.
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