Jones Trading cuts TFF Pharmaceuticals stock target on drug development program

On Thursday, Jones Trading adjusted its stock price target for TFF Pharmaceuticals (NASDAQ:TFFP), a company specializing in drug delivery systems, to $13.00 from the previous $25.00 while maintaining a Buy rating on the stock. This revision follows TFF Pharmaceuticals' recent updates on its drug development programs and financial results.

TFF Pharmaceuticals held a public conference call and webcast on March 27, 2023, to provide updates on its TFF TAC and TFF VORI programs. The company reported encouraging results for both assets. TFF Pharmaceuticals is now channeling resources towards the advancement of TFF TAC, which is aimed at preventing acute rejection in lung transplants.

Concurrently, the company is exploring strategic alternatives such as partnerships, collaborations, and government-based funding to further the development of TFF VORI.

The company's financial position remains a critical concern. As of the end of the fourth quarter of 2023, TFF Pharmaceuticals had approximately $5.5 million in cash. Moreover, the company recently received about $1.2 million from a direct offering. Despite these funds, there is uncertainty regarding the company's ability to finance its operations deep into 2024.

Jones Trading believes that the market has not fully recognized the potential of TFF Pharmaceuticals' TFF TAC and TFF VORI programs, or its underlying technology platform. Still, due to the potential risk associated with the company's funding for ongoing operations, Jones Trading has removed projected revenues from TFF VORI from its financial model.

This has led to the reduction in the 12-month price target for TFF Pharmaceuticals' shares.

In light of the recent developments and financial adjustments for TFF Pharmaceuticals, it's crucial to consider the latest market data and analysis provided by InvestingPro. With a market capitalization of just over $13 million, TFFP's valuation reflects its current stage as an emerging company in the drug delivery space.

Notably, the company's cash position is stronger than its debt load, a positive sign for investors concerned about financial stability. Still, it is important to note that TFFP has been rapidly depleting its cash reserves, which aligns with the concerns raised by Jones Trading regarding the company's ability to sustain operations into the next year.

The stock has experienced significant volatility, with a one-month total return plummeting by approximately 44.38%. This decline is further underscored by a substantial 69.42% drop over the past year. While TFFP does not currently offer dividends to its shareholders, the focus remains on its potential for growth through its TFF TAC and TFF VORI programs.

For investors seeking a deeper dive into TFFP's financial health and prospects, InvestingPro offers additional insights and metrics. There are 5 more InvestingPro Tips available, which can provide further guidance on the company's performance and outlook. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable information that could inform investment decisions.

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