On Monday (NASDAQ:MNDY), BMO Capital adjusted its price target for Y-mAbs Therapeutics (NASDAQ:YMAB), a biopharmaceutical company, to $24 from the previous $25 while maintaining an Outperform rating. The revision follows Y-mAbs' third-quarter 2024 earnings report, which showed total revenues of $18.5 billion. This figure fell short of the FactSet consensus by 20.6%, a discrepancy attributed by the company's management to an unfavorable US price mix. This was somewhat mitigated by a 5% increase in US volume.
Despite the revenue shortfall, Y-mAbs' management has decided to uphold its full-year 2024 revenue guidance, which is set between $87 million and $95 million. However, they anticipate that the actual results will land in the lower half of this projected range. The maintained guidance comes amidst the company's ongoing developments.
BMO Capital's continued endorsement of Y-mAbs is partly due to the company's advancements in its SADA platform. The firm is anticipating the release of initial data from the platform in the first quarter of 2025. This forward-looking optimism is a factor in the analyst's sustained Outperform rating for the stock.
In response to the changing dynamics of Y-mAbs' customer base, BMO Capital has made slight adjustments to its Danyelza pricing model. The adjustments account for a growing proportion of Medicaid patients using Danyelza, which has influenced the new price target. The Outperform rating suggests that BMO Capital still views Y-mAbs' stock favorably, despite the reduced price target and recent revenue performance.
In other recent news, Y-mAbs Therapeutics reported its Q3 2024 financial results, revealing a 10% decrease in net revenue at $18.5 million compared to the same quarter of the previous year. Despite this drop, the company's net revenue for the first nine months of 2024 remained stable at $61.2 million. The FDA-approved therapy DANYELZA experienced a 5% drop in U.S. product revenues, impacted by Medicaid claim adjustments and increased competition. However, Y-mAbs is maintaining its full-year revenue guidance, expecting to fall in the lower half of the $87-95 million range. In other developments, the company is advancing its SADA PRIT technology platform and has entered a new licensing agreement for potential commercialization in Japan.
InvestingPro Insights
Y-mAbs Therapeutics (NASDAQ:YMAB) presents a mixed financial picture, according to recent InvestingPro data. Despite the revenue shortfall noted in the article, the company boasts impressive gross profit margins of 88.83% for the last twelve months as of Q3 2024. This aligns with one of the InvestingPro Tips, which highlights Y-mAbs' "impressive gross profit margins."
The company's market capitalization stands at $692.99 million, reflecting investor confidence despite current challenges. Y-mAbs has shown strong performance in the stock market, with a remarkable 206.53% price total return over the past year. This robust return is consistent with another InvestingPro Tip that notes the company's "high return over the last year."
However, it's important to note that Y-mAbs is not currently profitable, with a negative operating income of $20.18 million for the last twelve months. This is reflected in the InvestingPro Tip stating that "analysts do not anticipate the company will be profitable this year."
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Y-mAbs Therapeutics, providing a deeper insight into the company's financial health and market position.
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