Trevena Stock Could Triple Form Here, Says Analyst

There is a lot to like right now about Trevena (TRVN), says H.C. Wainwright analyst Douglas Tsao. Tsao’s positive thesis for the drug maker is based on the latest developments Read More... The post Trevena Stock Could Triple Form Here, Says Analyst appeared first on TipRanks Financial Blog.

Trevena Stock Could Triple Form Here, Says Analyst

There is a lot to like right now about Trevena (), says H.C. Wainwright analyst Douglas Tsao.

Tsao’s positive thesis for the drug maker is based on the latest developments regarding Olinvyk, the company’s opioid agonist which last year gained FDA approval for the treatment of moderate to severe acute pain in adults. The drug was launched earlier this year, and all is going swimmingly so far.

“Even though the Olinvyk field force has only been active since February and mostly through digital channels, Trevena has already achieved 10 formulary wins and had 60 accounts in various stages of review as it makes progress toward a goal of 100 wins by the end of the year,” the analyst said.

The goal is reasonable enough, according to Tsao, who also believes the wins are a strong indication the drug is “gaining traction.” Although, to date, the “digital engagements” have been relatively successful, and brought contact with 98% of the target audience - far higher than the industry average - Tsao thinks that as more sales calls are done in person, the pace of wins will pick up, with “the latest proportion increasing to 70%.”

Additionally, a new clinical outcome study is slated to launch in 3Q, which will further showcase Olinvyk’s safety profile.

The open-label study will enroll approximately 200 patients and will further define “safety outcomes in the postoperative setting” vs. historic opioid data. The “prestigious” Cleveland Clinic will take charge of the study.

As data for this type of drug class is generally “sparse” and there is no consensus on methodology, Tsao is excited about the use of new continuous monitoring technology for the respiratory safety assessment. Another element to look out for will be the “cognitive function outcome” - in earlier studies, investigators had “anecdotally observed a benefit.”

“Though it is still unclear if this data can be used for a label expansion or be added to the label, another safety assessment should bolster Olinvyk’s already strong body of published literature and could catalyze further formulary wins,” the analyst further noted.

Tsao’s confidence in Trevena’s success is confirmed by a Buy rating and $5 price target. The implication for investors? Investors stand to pocket ~218% gain should the analyst's thesis play out. (To watch Tsao’s track record, )

The rest of the Street has no doubts concerning Trevena’s prospects, either. TRVN's Strong Buy consensus rating is backed by 3 Buys and 1 Hold. The average price target stands at $5.33, and implies possible upside of ~239% over the next year. (See TRVN stock analysis on TipRanks)

To find good ideas for biotech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Trevena Stock Could Triple Form Here, Says Analyst appeared first on TipRanks Financial Blog.

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Aritzia 4Q E-Commerce Revenue Increases 81%

On May 11, Aritzia (ATZ) announced financial results for the fourth quarter and full-year fiscal 2021. The fashion retailer posted lower revenues and profit than a year earlier, as lockdowns Read More... The post Aritzia 4Q E-Commerce Revenue Increases 81% appeared first on TipRanks Financial Blog.

Aritzia 4Q E-Commerce Revenue Increases 81%

On May 11, Aritzia (ATZ) announced financial results for the fourth quarter and full-year fiscal 2021. The fashion retailer posted lower revenues and profit than a year earlier, as lockdowns forced the company to close stores.

Aritzia’s revenue for 4Q 2021 came in at C$267.5 million, a decrease of 2.9% versus the prior-year quarter. The company had to temporarily close 39 out of 101 stores for most of the quarter. eCommerce revenue grew 81.1% relative to 4Q 2020. Adjusted net earnings amounted to C$0.16 per diluted share, down from C$0.21 per diluted share in the fourth quarter of the previous year.

As for full-year fiscal 2021, Aritzia’s revenue came in at C$857.3 million, down 12.6% from the previous fiscal year. The decrease in net sales was primarily due to COVID-19 and the related temporary store closures but was partially offset by growth in e-commerce. eCommerce revenue grew 88.3% to C$425.9 million, or 49.7% of net revenue, due to increased traffic and conversion. Adjusted net income per diluted share amounted to C$0.23, down from C$0.87 in fiscal 2020.

Aritzia’s Founder, Chairman, and CEO Brian Hill said, "We're excited by the strong start to fiscal 2022, on-track to more than double our first-quarter net revenue compared to last year, reflecting a previously unseen acceleration of sales in the United States and continued growth in our eCommerce business. Looking ahead, we are expediting investments across our four key strategic growth drivers: digital innovation of eCommerce and omni, geographical retail expansion, ongoing product development, and brand awareness. We will continue to expand our high-performing team, evolve our processes for even greater efficiency, and enhance our technology to fuel our long-term growth."

For fiscal year 2022, Aritzia expects net revenue growth of 30% to 35% from fiscal year 2021, driven by continued growth in its eCommerce business, continued recovery in retail performance, and contribution from more store openings. (See Aritzia stock analysis on TipRanks)

Last week, Canaccord Genuity analyst Derek Dley reiterated a Buy rating on the stock with a C$35.00 price target for a 15.7% upside potential.

The rest of the Street is bullish on ATZ, with a Strong Buy consensus rating, based on 4 Buys. The average analyst price target of C$36.50 implies an upside potential of 20.6% from current levels. Shares have risen by nearly 20% year-to-date.

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