On Thursday, Piper Sandler initiated coverage on shares of Aquestive Therapeutics (NASDAQ:AQST), assigning an Overweight rating with a price target of $10. The firm highlighted the company's potential for significant value creation through the development of its proprietary oral film products. Aquestive's leading product, Anaphylm, is a sublingual film version of epinephrine designed for emergency treatment of severe allergic reactions, including anaphylaxis.
The analyst from Piper Sandler expressed confidence in the potential market expansion for Anaphylm, citing the underpenetration of the rescue medication space. The firm believes that the data supporting Anaphylm demonstrates a reliable delivery of epinephrine comparable to injectable options, which is expected to contribute to a favorable review by the FDA, anticipated in the second half of 2025.
According to Piper Sandler, Anaphylm has the capacity to reach peak sales of approximately $300 million to $400 million. This projection is based on the premise of Aquestive operating a relatively lean commercial model that could yield high operating margins over time. The firm suggests that the risk/reward profile for Aquestive's shares is appealing, especially when considering the company's enterprise value of around $345 million.
The Overweight rating indicates that Piper Sandler sees Aquestive's stock performing better than the average return of the stocks the firm covers over the next 12 to 18 months. The $10 price target represents the firm's expectation of where the stock will trade in that same timeframe.
InvestingPro Insights
As Piper Sandler initiates coverage on Aquestive Therapeutics with an optimistic outlook, real-time data from InvestingPro provides additional context for investors considering the company's potential. With a market capitalization of $366.17 million and a volatile stock price history, Aquestive's financial health and stock performance are points of interest. The company's revenue has shown growth, with a reported increase of 6.09% over the last twelve months as of Q4 2023 and a significant quarterly growth rate of 23.63% in Q1 2023. Despite these positive revenue trends, the company operates with a negative operating income margin of -29.86% and an EBITDA growth of 65.25% over the same period.
InvestingPro Tips highlight that analysts do not anticipate Aquestive to be profitable this year, with the company not having been profitable over the last twelve months. Additionally, the stock has experienced a large price uptick over the last six months, with a 198.17% total return, indicating a potential for significant volatility. However, with liquid assets exceeding short-term obligations and a moderate level of debt, the company's financial stability may offer some reassurance to investors.
For those looking to delve deeper into Aquestive's financials and stock performance, additional InvestingPro Tips are available, providing a more comprehensive analysis. Investors can unlock these insights and more with a subscription to InvestingPro, and by using the coupon code PRONEWS24, they can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With numerous additional tips listed on InvestingPro, the platform can aid investors in making informed decisions about Aquestive Therapeutics.
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