On Friday, BofA Securities adjusted its price target for shares of Amicus (NASDAQ:FOLD) Therapeutics (NASDAQ:FOLD), reducing it to $13 from the previous $14. The firm maintained its Buy rating on the stock. This adjustment comes after Amicus reported first-quarter sales of $11 million for its Pombiliti+Opfolda (P&O) treatments, which was below the firm's expectations. The company's full-year 2024 sales guidance was set at $62-67 million, significantly lower than the anticipated $85.5 million by BofA and the consensus estimate of $90 million.
Amicus Therapeutics remains confident in the potential of P&O, anticipating growth acceleration as they continue to expand geographically, increase therapy awareness, and see improvements in reimbursement dynamics. The company also sees potential in label expansion, with ongoing clinical studies for children and infants with Pompe disease (PD) being key factors for future growth.
Despite the lower than expected sales guidance, BofA Securities believes that the long-term opportunity for Amicus remains unchanged. The firm has revised its full-year 2024 P&O sales estimate to $65 million and anticipates a more gradual penetration rate, forecasting peak sales to reach $898 million by 2033.
The company has compared the current sales trajectory of P&O favorably to the first full year of sales for its Galafold treatment, expecting nearly double the sales figures. This comparison is part of the management's effort to underscore the growth trajectory for P&O, even as it falls short of initial market expectations.
In summary, while Amicus Therapeutics' near-term sales forecast for P&O has led to a reduction in the price target by BofA Securities, the investment firm's outlook on the stock remains positive. The firm has reiterated a Buy rating with a new price objective of $13, reflecting confidence in the company's growth strategy and long-term market potential.
InvestingPro Insights
Amicus Therapeutics (NASDAQ:FOLD) is navigating a challenging period, with recent sales figures falling short of expectations. Despite this, InvestingPro data highlights a gross profit margin of 89.62% for the last twelve months as of Q1 2024, indicating significant efficiency in the company's operations. Additionally, the revenue growth for the same period stands at a healthy 25.74%, suggesting a solid trajectory in top-line performance.
InvestingPro Tips suggest that the stock may be positioned for a rebound, as it is currently trading near its 52-week low and the RSI indicates that it is in oversold territory. These insights could be particularly relevant for investors looking for potential entry points. Moreover, analysts predict that Amicus will turn profitable this year, which could signal a pivotal moment for the company. With a market capitalization of $2.81B, the company's financial stability is underscored by liquid assets that exceed short-term obligations.
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