On Thursday, Jones Trading adjusted its outlook on Dare Bioscience (NASDAQ: DARE), reducing the price target to $5.00 from the previous $6.00, while reaffirming a Buy rating on the stock. The change reflects the removal of anticipated future royalty revenues from the firm's financial model.
The analyst's decision came after reviewing Dare Bioscience's first-quarter earnings for 2024. The company successfully extended its cash runway into 2025, aided by a royalty financing agreement with XOMA, which is not rated by Jones Trading. The report also noted that all of Dare's programs are progressing as planned.
Looking ahead, the company is awaiting feedback from the FDA on the Phase 3 trial design for its Sildenafil Cream, which is expected in the second quarter of 2024. Additionally, initial pivotal data for Ovaprene, a non-hormonal contraceptive, is anticipated in the years 2025 or 2026.
Despite the lowered price target, the analyst emphasized that Dare Bioscience retains the commercial upside for Xaciato. The revision in the price target to $5.00 from $6.00 is attributed to the exclusion of future royalty revenue from the valuation model, while the Buy rating remains intact.
InvestingPro Insights
In light of the recent analysis by Jones Trading on Dare Bioscience (NASDAQ: DARE), investors may find additional context in the real-time data and insights from InvestingPro. The company's market capitalization stands at a modest $36.21 million, reflecting the scale of its operations in the biotech sector. Despite the challenges, analysts are optimistic about sales growth in the current year which aligns with the progression of Dare's programs as noted in the article.
InvestingPro Data indicates that Dare Bioscience has a negative Price/Earnings (P/E) ratio of -0.97 and an adjusted P/E ratio for the last twelve months as of Q4 2023 at -1.21, suggesting that the company is not currently profitable. Moreover, the stock has experienced significant volatility with a 14.8% return over the last week, yet suffered a 25.76% decrease over the past month. This volatility is noteworthy for investors considering the timing of their investments.
Among the InvestingPro Tips, it is highlighted that Dare holds more cash than debt on its balance sheet, which could be a stabilizing factor for the company's financial health. However, the company is quickly burning through cash, and its short-term obligations exceed its liquid assets, which could raise concerns about its financial sustainability in the absence of positive cash flow.
For investors seeking a deeper dive into these metrics and additional strategic insights, InvestingPro offers a comprehensive list of tips. Currently, there are 11 additional InvestingPro Tips available for Dare Bioscience, which can be accessed by visiting https://www.investing.com/pro/DARE. To gain further advantage, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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