On Tuesday, Lake Street Capital Markets adjusted its outlook on Aquestive Therapeutics (NASDAQ:AQST), reducing the price target to $7.00 from the previous $8.00, while reaffirming a Buy rating on the shares. This adjustment follows Aquestive Therapeutics' first-quarter 2024 revenue report, which fell short of both Lake Street's and the consensus estimates. The company reported revenues of $12.1 million, below the $13.0 million Lake Street had estimated and the consensus estimate of $12.3 million.
Despite the lower-than-expected revenue figure for the first quarter, Aquestive Therapeutics has decided to maintain its revenue and AEBITDA guidance for the full year 2024. Lake Street's focus for the company remains on the expected New Drug Application (NDA) submission for Anaphylm, which is slated for the end of this year.
The firm's decision to uphold its Buy rating indicates a continued positive outlook on Aquestive Therapeutics' potential, despite the recent adjustment in the price target. The reduction in the target price reflects the immediate financial results but does not alter the firm's long-term confidence in the company's growth prospects.
Aquestive Therapeutics' performance and upcoming NDA submission are key factors likely to influence the company's future trajectory in the market.
The revised price target and maintained Buy rating by Lake Street Capital Markets provide a snapshot of Aquestive Therapeutics' current financial health and future expectations. The firm's analysis is based on the latest available data and is subject to change as new information emerges and market conditions evolve.
In other recent news, Aquestive Therapeutics reported positive pharmacokinetic results for Anaphylm, its sublingual epinephrine film. The study showed that Anaphylm's performance remains consistent despite exposure to different beverages at varying temperatures and pH levels, suggesting its potential integration into patients' daily routines. In addition to this, Aquestive has also announced positive Phase 3 results for Anaphylm and FDA approval for Libervant diazepam Buccal Film in its first-quarter earnings call for 2024.
The company has raised over $75 million in new capital and noted an 8% increase in total revenues mainly due to higher revenue from out-licensed products. However, Aquestive reported a net loss of $12.8 million for the quarter, contrasting with the net income reported in the same period last year. The company maintains a strong cash position with $95.2 million in cash and cash equivalents.
Looking ahead, Aquestive projects total revenues for 2024 to be between $48 million and $51 million, and anticipates a non-GAAP adjusted EBITDA loss of approximately $22 million to $26 million. The company is actively working on the clinical progression of Anaphylm and launch activities for Libervant. `
InvestingPro Insights
As Aquestive Therapeutics navigates through its recent revenue challenges, the company's financial health and market performance are of particular interest to investors. According to real-time data from InvestingPro, Aquestive Therapeutics holds a market capitalization of $221.22 million. The company's revenue growth over the last twelve months as of Q1 2024 stands at 10.65%, with a gross profit margin of 60.23%, highlighting its ability to retain a majority of its revenue as gross profit.
Despite the company's efforts to maintain its revenue and AEBITDA guidance, InvestingPro Tips suggest caution. The stock is currently in oversold territory based on its Relative Strength Index (RSI), and analysts have revised their earnings expectations downwards for the upcoming period. Furthermore, Aquestive Therapeutics is not expected to be profitable this year, which is a critical consideration for investors.
For those considering an investment in Aquestive Therapeutics, there are additional InvestingPro Tips available that could provide further insights into the company's performance and potential. In fact, there are 11 more tips listed on InvestingPro that could be useful in making a well-informed decision. Interested individuals can take advantage of these insights and more by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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