On Thursday, H.C. Wainwright adjusted its outlook on Black Diamond Therapeutics (NASDAQ:BDTX) shares, reducing the 12-month price target to $11 from the previous $12 while maintaining a Buy rating on the stock. This revision follows the company's first-quarter financial report for 2024.
Black Diamond Therapeutics reported a first-quarter net loss of $0.35 per share, which was less than the anticipated $0.44 per share loss. The smaller loss was primarily attributed to higher-than-expected operating expenses.
The company's research and development (R&D) costs reached about $13.5 million, and selling, general and administrative (SG&A) expenses were approximately $6.7 million. These figures contrast with H.C. Wainwright's earlier estimates of $16.4 million for R&D and $6.2 million for SG&A.
In light of the recent financial results, H.C. Wainwright has also updated its projection for the full-year net loss in 2024 to $1.60 per share, which is an improvement from the previously estimated net loss of $1.84 per share. Despite the change in the forecasted loss, the firm remains confident in Black Diamond Therapeutics' prospects, as evidenced by the continued Buy rating.
The adjustment in the price target to $11 is a reflection of the higher long-term operating expenses that are now anticipated. The firm's stance indicates a belief in the company's overall growth trajectory despite the near-term increase in costs.
InvestingPro Insights
According to InvestingPro data, Black Diamond Therapeutics (NASDAQ:BDTX) holds a market capitalization of $285.77 million, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at -3.63. This negative P/E ratio is indicative of the company's current lack of profitability, a point underscored by the company's significant net loss reported in the first quarter. Additionally, the stock has experienced a substantial one-year price total return of 198.9%, reflecting a volatile but potentially rewarding investment for those who entered at earlier valuations.
InvestingPro Tips highlight that Black Diamond Therapeutics has more cash than debt on its balance sheet, which may offer some financial stability. Moreover, two analysts have revised their earnings upwards for the upcoming period, providing a potentially more optimistic outlook on the company's future performance. On the flip side, analysts do not anticipate the company will be profitable this year, and the stock has suffered from weak gross profit margins. These insights could be particularly relevant for investors considering the recent price target adjustment by H.C. Wainwright.
For investors seeking a more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/BDTX. To access these insights and take advantage of the full range of features offered by InvestingPro, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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