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H.C. Wainwright lowers Calliditas shares target post Q1 report

EditorEmilio Ghigini
Published 2024-05-24, 07:18 a/m
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CALT
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On Friday, H.C. Wainwright adjusted its outlook on Calliditas Therapeutics (NASDAQ:CALT) shares, reducing the price target to $45 from the previous $50 while maintaining a Buy rating on the stock. The revision follows the company's first-quarter financial report for 2024, which was disclosed on Thursday.

Calliditas reported a total revenue of SEK295.5 million for the quarter, falling short of the consensus estimate of SEK370.8 million. Additionally, the company experienced a net loss of SEK4.59 per share, which was significantly higher than the anticipated net loss of SEK0.98 per share.

The company's management highlighted that Tarpeyo's sales for the first quarter were adversely affected by a cyberattack on Change Healthcare (NASDAQ:CHNG), leading to a revenue shortfall of approximately $4.7 million, or roughly SEK50 million.

Despite this setback, they expect these revenues to be recognized in the upcoming months. Tarpeyo, nonetheless, recorded a 50% year-over-year growth, generating SEK278.3 million for the quarter compared to SEK185.7 million in the first quarter of 2023.

Calliditas also achieved a record number of enrollments and prescribers during the quarter, with 705 new patients and 354 new prescribers added to its network. Following the reported financial outcomes, H.C. Wainwright updated its model for the company.

For the full year 2024, the firm now projects Calliditas will have total revenue of approximately SEK1.84 billion and a net loss of SEK2.72 per share. This contrasts with the previous estimates which forecasted SEK1.97 billion in revenue and a net income of SEK0.83 per share.

The revised projections also take into account a slower ramp-up of Tarpeyo sales than initially expected for 2025 and the years following. Consequently, the 12-month price target for Calliditas Therapeutics' American Depositary Shares (ADS) has been adjusted to $45, reflecting the updated financial expectations and market conditions.

InvestingPro Insights

As Calliditas Therapeutics navigates through its recent cyberattack-related challenges and adjusts its sales expectations, it's essential for investors to have a comprehensive view of the company's financial health and market performance. The InvestingPro data paints a detailed picture: Calliditas boasts a robust gross profit margin of 94.99% for the last twelve months as of Q4 2023, indicating efficient cost management relative to its revenues, which have grown by an impressive 50.32% in the same period. However, with a high Price / Book multiple of 19.67, the market may be pricing in optimistic future growth or unique assets that justify this valuation. On the performance front, the company has seen a strong return, with a 22.97% increase over the last month.

InvestingPro Tips suggest that while analysts project that Calliditas will not be profitable this year, the company's liquid assets are sufficient to cover short-term obligations, indicating a degree of financial flexibility. Additionally, Calliditas operates with a moderate level of debt, which may provide some comfort to investors concerned about financial stability. For those interested in a deeper analysis, there are 10 additional InvestingPro Tips available for Calliditas, which can be accessed for further strategic insights. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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