On Friday, Oppenheimer has adjusted its price target for Acadia Pharmaceuticals (NASDAQ:ACAD), bringing it down to $17.00 from the previous $19.00, while maintaining a Perform rating on the stock.
This revision follows Acadia's first-quarter earnings report for 2024, where the company posted total revenues of $205.8 million. These figures slightly missed the analyst's projection of $207.0 million and the consensus estimate of $208.3 million.
The company's focus on profitability was evident as it reported positive earnings per share (EPS) of $0.10, surpassing both Oppenheimer's expectation of $0.03 and the consensus estimate of $0.05. Acadia's Nuplazid franchise was highlighted for its contribution of over $300 million in annualized cash flow. Despite these positive EPS results, the revenue shortfall prompted the price target revision.
Acadia has reaffirmed its full-year 2024 guidance for sales of both Nuplazid and Daybue. However, Oppenheimer anticipates Daybue sales to be at the lower end of the projected $370-420 million range. This forecast is based on the first-quarter sales of Daybue, which totaled $75.9 million, just shy of the $76-82 million guidance.
The company's commitment to successfully launching Daybue, including exploring opportunities outside the United States, was noted. Additionally, the firm acknowledged Acadia's strategic business development commentary following the unsuccessful Phase 3 ADVANCE-2 trial. Research on ACP-204 and ACP-101 continues to progress.
Oppenheimer has updated its model for Acadia Pharmaceuticals with the latest actuals and adjustments, resulting in the new price target of $17. This change reflects the firm's analysis of the company's recent performance and ongoing initiatives.
InvestingPro Insights
Following the recent earnings report from Acadia Pharmaceuticals (NASDAQ:ACAD), investors may be looking for additional insights to gauge the company's financial health and future prospects. According to real-time data from InvestingPro, Acadia has a market cap of $2.51 billion, showcasing its substantial size in the biopharmaceutical sector. Despite a challenging quarter, the company's revenue growth remains robust, with a 56.43% increase over the last twelve months as of Q1 2024, and an even more impressive quarterly revenue growth of 73.75% in Q1 2024.
InvestingPro Tips highlight that Acadia holds more cash than debt on its balance sheet and is expected to grow its net income this year. These factors suggest a strong financial position and potential for profitability, which may reassure investors. Additionally, the stock is trading near its 52-week low and is considered to be in oversold territory according to the RSI, indicating a potential buying opportunity for value investors.
For those seeking a deeper analysis, InvestingPro offers additional tips on Acadia Pharmaceuticals, which can be accessed at https://www.investing.com/pro/ACAD. These tips can provide further guidance on the company's performance and stock valuation. Moreover, readers can utilize the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a wealth of financial data and expert insights. With 11 more InvestingPro Tips available, investors have a comprehensive resource to inform their investment decisions in Acadia Pharmaceuticals.
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