Barrington analyst Michael Petusky has cut the firm’s price target to $25 from $37
Shares of Anika Therapeutics ($ANIK), which provides early intervention for orthopedic care, slipped 3.39% on Friday, a day after the company’s results fell short of Wall Street estimates even as the retail sentiment stayed cautious.
Anika has beaten earnings estimates three times in the last four quarters. For the third quarter, the company posted earnings per share (EPS) of – $0.25, missing the consensus estimate of $0.09. Its net loss widened to $29.9 million from $6.6 million in the year-ago period. The company’s reported revenues of $38.75 million were 7.91% below consensus estimates.
It also updated its guidance on its 2024 adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda, expecting it to fall between $16 and $18 million.
Petusky’s price target is based on the company’s FY25 adjusted EBITDA estimate plus $50M of value it adds for the company’s “two potential needle-mover products” – Cingal and Hyalofast – that have completed “pivotal trials” but are yet to receive regulatory approval, the report added.
Retail sentiment has remained ‘neutral’ on the stock even as the message volumes soared into the ‘extremely high’ zone.
Anika also announced the sale of its Arthrosurface business for $10 million, and said it was actively pursuing the sale of another division, Parcus Medical, as part of its efforts to refocus on its strategy. The sale will “optimize” the company’s capital allocation and redouble efforts on its profitable core hyaluronic acid (HA) technology and Regenerative Solutions portfolios.
Some users were optimistic about its long-term prospects despite shares being down 27% year-to-date.
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