On Monday, Achieve Life Sciences (NASDAQ:ACHV) experienced a revision in its stock outlook. Oppenheimer has adjusted the price target to $11 from the previous $18 while keeping an Outperform rating on the shares.
The adjustment follows Achieve Life Sciences' earnings per share (EPS) report, which showed a slight miss at ($0.26) compared to the estimates and consensus of ($0.24). The focus of analysts remains on the company's smoking cessation program, particularly the upcoming single open-label study (ORCA OL), which is expected to commence in May.
The study is advancing as planned, with initiation visits currently being scheduled at 29 sites that have shown positive results in past trials. There is also notable interest from participants. With the company aiming to enroll 1,100 individuals who have either been treated previously or were on placebo in past studies, there is optimism about reaching the target enrollment of 650 within this year.
Despite this positive outlook and management's confirmation of sticking to the New Drug Application (NDA) submission timeline for the first half of 2025, the price target has been lowered. This decision is attributed to a more cautious stance taken by Oppenheimer due to the current market conditions.
InvestingPro Insights
As Achieve Life Sciences (NASDAQ:ACHV) navigates through its clinical trials and strives towards its NDA submission, real-time data from InvestingPro offers a snapshot of the company's financial health and stock performance. With a market capitalization of $157.9 million, the company holds more cash than debt, which is a positive sign for investors considering the company's ability to fund ongoing operations. However, the company's P/E ratio stands at -3.62, reflecting its current lack of profitability, which is also echoed in the fact that analysts do not expect the company to be profitable this year.
Looking at stock performance, ACHV has experienced a 1-month price total return of 6.1%, indicating some recent positive momentum in the market. Yet, it's important to note that the 1-year price total return is -43.92%, which suggests that the company has faced significant challenges over the past year. Additionally, with a price that is 53.05% of its 52-week high and an InvestingPro fair value estimate of $4.09, investors should weigh the potential for growth against the risks associated with the company's ongoing losses.
For those considering an investment in Achieve Life Sciences, InvestingPro offers additional insights. There are 5 more InvestingPro Tips available that delve deeper into the company's financials and projections, which can be found at https://www.investing.com/pro/ACHV. To help make the most informed decisions, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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