H.C. Wainwright has adjusted its price target for Lexeo Therapeutics (NASDAQ: LXEO), reducing it to $21.00 from the previous target of $22.00, while still recommending the stock as a Buy. The decision comes in the wake of Lexeo's second-quarter financial report for the year 2024.
Lexeo reported a net loss of $0.64 per share for the second quarter, which was slightly better than the analyst's forecast of a $0.65 per share loss. The company's research and development (R&D) expenses amounted to $16.6 million and selling, general, and administrative (SG&A) expenses were reported at $7.0 million.
These figures compared favorably to the analyst's estimates, which were $16.3 million for R&D and $7.8 million for SG&A.
The firm has also updated its projection for Lexeo's full-year 2024 net loss to $2.75 per share, an improvement from the previously estimated loss of $2.79 per share.
Lexeo concluded the second quarter with approximately $175.0 million in cash reserves. This capital is anticipated to sustain the company's operations into 2027.
The revision of the 12-month price target to $21 from $22 is primarily attributed to an increase in the number of shares. Despite this change, H.C. Wainwright reaffirms its confidence in the stock with a continued Buy rating.
In other recent news, Lexeo Therapeutics has made significant strides in its clinical trials for LX2006, a drug aimed at treating cardiomyopathy due to Friedreich's ataxia. Both H.C. Wainwright and Stifel have maintained their buy ratings for Lexeo, with price targets of $22.00 and $20.00 respectively.
These ratings come after Lexeo reported that 75% of patients with elevated left ventricular mass index (LVMI) saw reductions of 10% or more after 12 months. Furthermore, all patients with 18 months of follow-up exhibited a 15% or greater reduction in LVMI.
In addition, Lexeo has elected Mette Kirstine Agger as a Class I Director and ratified KPMG LLP as its independent auditor at its 2024 Annual Meeting of Stockholders. The company also secured an in-license agreement with Cornell University to bolster the development of LX2006.
Baird has initiated coverage on Lexeo, assigning the stock an Outperform rating. The firm highlighted Lexeo's strategic approach to addressing rare cardiac diseases and Alzheimer's through its advanced gene therapies.
Lexeo's LX2006 has also received Fast Track designation from the U.S. Food and Drug Administration, a status designed to expedite the development and review of drugs that treat severe conditions and address unmet medical needs.
InvestingPro Insights
Recent data from InvestingPro offers a detailed financial perspective on Lexeo Therapeutics (NASDAQ:LXEO). With a market capitalization of approximately $396.07 million, the company's financial health is under scrutiny. The InvestingPro data indicates that Lexeo has a negative P/E ratio of -2.79, reflecting its current lack of profitability, a trend that is expected to continue as analysts do not anticipate the company will be profitable this year. Additionally, the company's gross profit margins have been weak, with a gross profit of -$57.76 million over the last twelve months as of Q2 2024.
However, not all metrics are negative. Lexeo holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations, which could provide some financial stability in the near term. On the stock performance front, the company's shares have fared poorly over the last month, with a one-month price total return of -31.93%. Nevertheless, it's worth noting that the company's stock has seen a 19.2% one-year price total return, demonstrating some resilience over a longer period.
For investors seeking additional insights, there are more InvestingPro Tips available, providing a comprehensive analysis of Lexeo's financial standing and market performance. In total, there are 7 additional tips listed on InvestingPro. For a deeper dive into these metrics and to explore the full range of insights, visit the dedicated page for Lexeo at InvestingPro.
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