Tuesday, H.C. Wainwright updated its outlook on Rani Therapeutics Holdings (NASDAQ:RANI), increasing the price target to $13.00 from the previous $12.00, while reiterating a Buy rating on the company's shares. The adjustment followed Rani's announcement of its financial results for the first quarter of 2024.
The company reported a net loss of $0.56 per share for the first quarter of 2024, which was close to the firm's estimate of a $0.55 per share loss. The research and development (R&D) expenses for the quarter amounted to $7.6 million, and selling, general, and administrative (SG&A) expenses totaled $6.4 million. These figures compared to the analyst's projections of $7.8 million for R&D and $6.0 million for SG&A expenses.
Following the recent financial disclosure, H.C. Wainwright now anticipates Rani Therapeutics to post a net loss of $2.36 per share for the full year of 2024. This is a slight increase from the prior estimate of a $2.33 per share loss. The firm's analyst expressed continued confidence in the stock by maintaining the Buy rating.
The updated price target reflects a positive stance on Rani Therapeutics' shares over the next 12 months. The firm's analyst has based this outlook on the company's latest financial performance and expense management. The higher price target suggests a potential upside from the previous valuation.
InvestingPro Insights
As Rani Therapeutics Holdings (NASDAQ:RANI) navigates through its financial year, real-time data from InvestingPro offers a clear picture of the company's market position. With a market capitalization of $381.14M and a Price / Book ratio of 29.62 as of the last twelve months ending Q4 2023, the company presents a significant valuation in its sector. Despite not paying dividends, Rani's stock has experienced a remarkable one-week price total return of 18.5% and an even more impressive six-month price total return of 281.82%, reflecting strong investor confidence and market momentum.
On the operational front, InvestingPro Tips reveal that Rani operates with a moderate level of debt and its liquid assets exceed short-term obligations, which may offer some financial stability. However, analysts have flagged concerns such as weak gross profit margins and do not expect the company to be profitable this year. These insights could be crucial for investors considering the company's potential for growth versus the risks involved.
For those looking to delve deeper into the financial analytics of Rani Therapeutics, InvestingPro provides additional insight with more InvestingPro Tips, guiding investors on what to watch for in the upcoming periods. To access these insights, visit https://www.investing.com/pro/RANI and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 9 additional InvestingPro Tips available to help you make more informed investment decisions.
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