On Friday, H.C. Wainwright analysts increased the price target on Optinose (NASDAQ:OPTN) to $18.00, up from the previous $5.00, while maintaining a Buy rating on the company's shares.
The adjustment comes in the wake of Optinose's 1-for-15 reverse stock split that became effective on December 31, aimed at ensuring compliance with Nasdaq's minimum closing bid price requirement for continued listing.
The reverse stock split has reduced the number of common shares outstanding to approximately 10,055,300 from 150,829,507. This corporate action was a strategic move to meet the Nasdaq's $1.00 minimum bid price rule. In light of this change, the firm has revised the price target to mirror the reduced share count.
Optinose, which specializes in treatments for ear, nose, throat (ENT), and allergy specialists, has seen its profile rise with the development of XHANCE, a corticosteroid drug-device combination nasal spray. XHANCE is the first and only approved treatment for patients with chronic rhinosinusitis without nasal polyps (CRSsNP), as well as for those with nasal polyps (CRSwNP).
The analysts' optimism is also supported by the company's financial guidance for the previous year. The firm continues to project $77.3 million in net revenues for the full year of 2024, despite making conservative adjustments to the revenue model.
"Based on continued anticipated near-term growth, we reiterate our Buy rating and have adjusted our price target to $18 from $5," the firm said.
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