On Thursday, BofA Securities adjusted its outlook on Liquidia Technologies (NASDAQ:LQDA) shares, raising the price target to $20.00 from the previous $17.00, while reaffirming a Buy rating on the stock. The adjustment follows Liquidia's promising fourth-quarter update in 2023, as the company gears up for the anticipated full approval and market launch of its drug, Yutrepia.
The company is currently awaiting the lifting of an injunction that would permit Yutrepia's launch for treating pulmonary arterial hypertension (PAH) and is also seeking full approval for the drug's use in pulmonary hypertension associated with interstitial lung disease (PH-ILD) after the exclusivity period ends on March 31. BofA Securities anticipates Liquidia will be prepared for Yutrepia's market introduction.
The analyst cited the strong market potential for dry powder inhalers (DPI) and projected that Yutrepia could achieve peak sales of approximately $686 million in PAH, with a market launch expected in 2024. The firm is also closely watching for the FDA's decision on full approval in PH-ILD, which would expand Yutrepia's market indications.
In addition to Yutrepia's progress, BofA Securities is optimistic about the developments in Liquidia's L606 program. The company is expected to release interim data from an open-label trial in PH-ILD in 2024 and aims to initiate a phase 3 trial by the end of the same year. The resolution of the legal matter, referred to as "˜793," is also anticipated, which would clear the way for Yutrepia's launch in PAH. The reiterated Buy rating and new price objective reflect these positive developments.
InvestingPro Insights
Amidst the positive outlook from BofA Securities on Liquidia Technologies, InvestingPro data provides a deeper dive into the company's financial health and market performance. The market capitalization stands at a robust $1.12 billion USD, reflecting significant investor confidence. However, the P/E ratio is currently negative at -11.55, and the adjusted P/E ratio for the last twelve months as of Q4 2023 is even lower at -20.09, indicating that the company is not generating profit relative to its share price. This aligns with the analyst's anticipation of net income likely to drop this year, as one of the InvestingPro Tips suggests.
Nonetheless, Liquidia Technologies has demonstrated strong market performance with a one-year price total return of 125.92%, underscoring the company's significant return over the last year. The company's shares are trading near their 52-week high, at 97.23% of that peak, which is in line with the sharp uptick in share price over the last six months, as highlighted by another InvestingPro Tip. This impressive return momentum might be a reflection of investor optimism towards the potential of Yutrepia and the company's pipeline.
Investors looking for a comprehensive analysis of Liquidia Technologies, including additional InvestingPro Tips that could provide further insights into the company's debt levels, profitability, and valuation multiples, can find more information on InvestingPro. There are 11 more tips available, which could help investors make more informed decisions. To access these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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