Mizuho has issued a Buy recommendation for Adverum Biotechnologies (NASDAQ:ADVM) on Thursday. The firm has set a one-year price target of 4.34 for Adverum, marking a significant potential increase of 375.02% from its last closing price of 0.91. This bullish outlook comes despite the company's projected annual revenue decline of 100% and a non-GAAP EPS of -1.48.
In the face of these projections, institutional interest in Adverum has seen an uptick. The number of funds or institutions holding positions in the biotech company rose by 1.09% to 93 in the last quarter, with an average portfolio weight dedicated to ADVM at 0.23%. Total institutional shares have also grown by 5.39% to 64,252K shares in the past three months, further signaling a positive sentiment towards the stock as demonstrated by the put/call ratio of ADVM at 0.00.
Key stakeholders include Commodore Capital, FBIOX - Biotechnology Portfolio, Bank Of America, Versant Venture Management, and Goldman Sachs Group (NYSE:GS). Notably, Commodore Capital has increased its stake in Adverum by 50%.
Adverum is currently developing ADVM-022, a novel gene therapy candidate. Administered as a one-time intravitreal injection, ADVM-022 aims to treat serious ocular and rare diseases such as wet age-related macular degeneration and diabetic macular edema. Through this therapy, Adverum seeks to address unmet medical needs.
The company's performance is assessed using backtested quantitative models, which have played a role in Mizuho's optimistic stance despite the projected financial challenges.
InvestingPro Insights
In light of InvestingPro's real-time data and tips, Adverum Biotechnologies presents a mixed bag of opportunities and challenges. With a market cap of $98.04 million and a negative P/E ratio of -0.74, the company's financial health is questionable. Over the last three months, the company's price has fallen by 53.77%, a significant decline that aligns with the InvestingPro Tip stating that the stock has fared poorly over the last month.
However, on the brighter side, the company holds more cash than debt on its balance sheet and its liquid assets exceed short term obligations, suggesting good liquidity. This aligns with the positive sentiment demonstrated by the increased institutional interest and stake increases by key stakeholders like Commodore Capital.
InvestingPro Tips also highlight that two analysts have revised their earnings upwards for the upcoming period. This could be a sign of potential turnaround, especially given Mizuho's 'Buy' recommendation and the one-year price target of 4.34, which indicates a potential increase of 375.02% from its last closing price.
In conclusion, while Adverum Biotechnologies has its challenges, it also presents potential opportunities for investors. For more detailed insights and tips, consider exploring InvestingPro's product, which includes numerous additional tips to guide your investment decisions.
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