On Friday, B.Riley initiated coverage on Eton Pharmaceuticals (NASDAQ:ETON), a specialty company operating in the ultra-rare pediatric endocrinology and metabolic genetics space, with a Buy rating and a 12-month price target of $21.00 per share.
"We believe ETON is approaching a revenue inflection point in 2025, driven by Increlex and ET-400, which may result in profitability in 2025 with ensuing growing positive cash flow," the analysts at the firm said.
Eton Pharmaceuticals, trading on NASDAQ under the ticker NASDAQ:ETON, has been recognized for its strategy of acquiring under-invested products with specific value propositions and developing late-stage candidates through lower-risk approval routes.
The company has reported 15 consecutive quarters of growth and has recently posted its first positive GAAP net income quarter. Eton's focused approach, utilizing a specialized sales force to market its portfolio of orphan drug products, has resulted in efficient market penetration. According to B.Riley, this strategy is yielding approximately $3 for every $1 spent to acquire products, which exceeds initial expectations.
B.Riley suggests that Eton Pharmaceuticals is on track to meet its targeted $100 million annual revenue run-rate over the next year. This projection is based on the company's current growth trajectory and market performance. The firm is looking forward to Eton's first full-year financial guidance, which may be provided in the first quarter, as a potential indicator of the company's operational outperformance.
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