On Monday, Lake Street Capital Markets updated its outlook on shares of Checkpoint Therapeutics (NASDAQ: NASDAQ:CKPT), raising the stock's price target from $4.00 to $7.00. The firm maintained a Buy rating on the shares. Currently trading at $4.08, the stock sits well below the analyst consensus high target of $27.00.
The analyst responsible for the report believes that Checkpoint Therapeutics is poised for continued growth into 2025, based on the company's strong performance as it concludes the year. According to InvestingPro data, the stock has already demonstrated impressive momentum with a 73% gain over the past six months.
The analyst's positive stance on Checkpoint Therapeutics is rooted in the company's momentum exiting 2024, which is expected to pick up pace in the following year. This optimism is reflected in the significant increase in the price target.
While InvestingPro analysis indicates the stock is currently fairly valued, investors should note that the company faces some financial challenges, with a weak overall financial health score of 1.64 out of 5. The analyst's report shifts the valuation outlook forward from fiscal year 2025 to fiscal year 2026, indicating a long-term confidence in the stock's potential.
The report further suggests that Checkpoint Therapeutics is well-positioned for another year of alpha generation, a term used to describe a strategy's ability to beat the market on a risk-adjusted basis. With a beta of 1.32, the stock has shown higher volatility than the broader market. The analyst's recommendation comes despite current profitability challenges, as revealed by InvestingPro's analysis, which shows negative EBITDA of -$37.51M.
Additionally, the analyst highlights the wide economic moat of Checkpoint Therapeutics, suggesting that the company has a sustainable competitive advantage over its peers. This, combined with its robust financials, forms the basis for the recommendation that Checkpoint Therapeutics should be a core holding in any institutional portfolio.
The adjustment in the price target and the continued Buy rating signal a strong vote of confidence in Checkpoint Therapeutics' future performance and its role in the market. Investors and market watchers will be keeping an eye on the company's progress as it moves into the new fiscal year.
In other recent news, Checkpoint Therapeutics has reported promising results from its cosibelimab trial. The updated data shows deepening response rates over time, with objective response rates surpassing previous observations. The company has set a Prescription Drug User Fee Act goal date for December 28, 2024, for the Biologics License Application for cosibelimab. This follows a complete response letter from the FDA, which did not question the drug's efficacy or safety.
In financial updates, Checkpoint Therapeutics reported second-quarter results, surpassing both firm and consensus estimates with an earnings per share of ($0.18). The company also secured an additional $12 million from a recent offering. In analyst notes, H.C. Wainwright has reiterated a Buy rating on the stock, expressing confidence in cosibelimab's potential market opportunity.
In other company news, Checkpoint Therapeutics announced a stock sale expected to generate approximately $12 million and entered into a partnership with GC Cell to evaluate the combination of their cancer treatments, cosibelimab and GC Cell's Immuncell-LC. These are recent developments in Checkpoint Therapeutics' ongoing efforts in the field of immunotherapy and targeted oncology.
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