On Tuesday, H.C. Wainwright adjusted its price target for SAB Biotherapeutics (NASDAQ:SABS), a biopharmaceutical company, reducing it to $6 from the previous $10, while maintaining a Buy rating on the stock.
The revision follows SAB Biotherapeutics' fourth-quarter financial report, which showed a loss per share of $3.38, significantly deviating from the analyst's earlier estimate of a $0.64 loss per share. The discrepancy was attributed to several one-time charges that were included in the general and administrative expenses.
The firm also revised its full-year 2024 earnings per share (EPS) estimate for SAB Biotherapeutics to a loss of $4.90 from the prior estimate of a loss of $1.78. This adjustment takes into account the company's financial results and projections. As of December 31, 2023, SAB reported having $56.6 million in cash, cash equivalents, and marketable securities.
The company had previously announced on October 2, 2023, that it entered into a private placement agreement designed to provide up to $110 million in gross proceeds through multiple tranches. Between October and November of 2023, SAB Biotherapeutics received approximately $67.1 million from the issuance of shares of preferred stock as part of this offering.
H.C. Wainwright highlighted the company's financial strategy, noting that the current cash balance, along with the potential future cash from the exercise of all outstanding Tranche B warrants, is expected to be sufficient to fund SAB Biotherapeutics' operations well into the year 2026. This projection is based on the company's current and anticipated financial resources.
InvestingPro Insights
In light of H.C. Wainwright's recent price target adjustment for SAB Biotherapeutics, an examination of the company's financial health and market performance is particularly pertinent. According to InvestingPro data, SAB Biotherapeutics holds a market cap of approximately $39.58 million and is experiencing a significant revenue decline, with a -90.63% change in the last twelve months as of Q4 2023. Additionally, the company's stock has seen a notable price drop of -38.71% over the last three months.
InvestingPro Tips for SAB Biotherapeutics highlight a mixed financial picture. On one hand, the company holds more cash than debt, suggesting a solid balance sheet, and liquid assets exceed short-term obligations, indicating short-term financial stability. On the other hand, SAB Biotherapeutics is quickly burning through cash, analysts expect both a sales decline and a drop in net income in the current year, and they do not anticipate the company will be profitable this year. Moreover, SAB Biotherapeutics has not been profitable over the last twelve months and does not pay a dividend to shareholders, which may be a concern for income-focused investors.
For those looking to delve deeper into SAB Biotherapeutics' financials and performance metrics, InvestingPro offers a comprehensive set of additional tips to guide investment decisions. In fact, there are 6 more InvestingPro Tips available for SAB Biotherapeutics which can be accessed by visiting: https://www.investing.com/pro/SABS. To gain further insights and take advantage of these tips, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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