On Tuesday, H.C. Wainwright adjusted its outlook on Panbella Therapeutics (NASDAQ:PBLA), reducing the price target to $5.00 from the previous $16.00, but retained a Buy rating on the stock. The revision follows Panbella's announcement of its financial results last week. The biopharmaceutical company reported a GAAP EPS of ($65.90) for the fourth quarter of 2023 and ($316.52) for the full year, which did not align with the analyst estimates of ($28.40) and ($194.60), or the consensus of ($24.40) and ($203.80).
The discrepancy in earnings per share is attributed primarily to non-cash warrant accounting. This comes after the company completed a 1:20 reverse stock split in January 2024. Despite the financial results, Panbella ended the year with $2.6 million in cash and successfully raised an additional $9 million in gross funding in January.
The firm highlighted Panbella's achievement in securing funding for its significant number of clinical trials. However, it underscored the necessity for Panbella to obtain additional capital to sustain its financial health. Looking ahead to 2024, multiple data readouts are expected from the company's clinical trials. The analyst firm believes that positive outcomes from these trials could generate investor excitement and propel further advancements in Panbella's pipeline.
InvestingPro Insights
The recent financial performance of Panbella Therapeutics (NASDAQ:PBLA) has prompted analysts to adjust their outlooks, and a closer look at the company's real-time data and InvestingPro Tips may provide additional context for investors. With a market capitalization of just $2.67 million and a significant negative return on assets of -301.11% for the last twelve months as of Q4 2023, the financial health of the company appears precarious. The stock's price has also experienced a dramatic downturn, with a 1-week total return of -14.06% and a 1-year total return of -99.79%, reflecting a price that is currently only 0.14% of its 52-week high.
InvestingPro Tips suggest that Panbella's stock trades with high price volatility and has taken a substantial hit over the last week, month, and year. The company is also noted to have weak gross profit margins and short term obligations that exceed its liquid assets, which may contribute to the need for additional capital as highlighted by H.C. Wainwright. Furthermore, analysts do not anticipate the company to be profitable this year, and the stock does not pay a dividend to shareholders.
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