Oppenheimer has revised its price target for ORIC Pharmaceuticals (NASDAQ: ORIC), decreasing it to $15 from the previous $17 while maintaining an Outperform rating on the stock.
The adjustment comes ahead of the company's fourth fiscal quarter of 2024 (June) results, which are scheduled to be released after the market closes on Thursday, August 15th. The firm anticipates ORIC's results to be in line with or slightly above consensus estimates, citing a continued recovery in a fluctuating demand environment.
The analyst projects a year-over-year increase of 5.9% and a quarter-over-quarter rise of 5.6%. Looking forward to the first fiscal quarter of 2024 (September), the expectations are for a modestly higher outlook than consensus estimates, driven by ongoing momentum in AI transceiver sales.
Industry discussions suggest a robust backlog for COHR's 800G transceiver, although capacity constraints may pose challenges through the end of the year. The forecasts show a substantial year-over-year growth of 28.5% and a smaller quarter-over-quarter growth of 2.1%.
The report suggests that COHR is well-positioned to navigate past a period of industry-wide demand challenges, with datacom tailwinds providing long-term optimism. The engagement with both existing and next-generation transceiver products and expansion to new top-tier CSP customers bolsters confidence in COHR's long-term prospects.
In other recent news, ORIC Pharmaceuticals has commenced dosing of ORIC-944, in combination with other drugs, as part of a Phase 1b trial for the treatment of metastatic prostate cancer. The trial, which includes a dose escalation and expansion portion, aims to evaluate the safety and efficacy of the combinations. The company has partnered with Bayer (OTC:BAYRY) and Janssen Research & Development, a Johnson & Johnson (NYSE:JNJ) company, for the provision of androgen receptor inhibitors used in the trial.
ORIC Pharmaceuticals has also been the subject of a revised outlook from Citi, which reduced its price target from $15 to $14 while maintaining a 'Buy' rating for the company. The adjustment came after ORIC provided insights into future clinical developments, including the initiation of combination trials for ORIC-944, a PRC2 inhibitor.
Further, the company has shared data about the monotherapy application of ORIC-944 in metastatic prostate cancer, indicating a clean safety profile and strong target engagement. Lastly, ORIC Pharmaceuticals has projected the release of updated Phase 1b data for another drug candidate, ORIC-114, in the first half of 2025.
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