Roth/MKM lowers TFF Pharmaceuticals shares target due to ‘cash position’

Apr 1, 2024 6:06 pm | News

On Monday, TFF Pharmaceuticals (NASDAQ:TFFP) shares saw its price target adjusted by Roth/MKM, which now stands at $36.00, down from the previous $44.00. Despite the reduction, the firm maintains a Buy rating on the stock.

The revision comes after the company reported its fourth quarter of 2023 pro forma cash position at approximately $6.6 million, which is expected to fund operations into the second quarter of 2024.

TFF Pharmaceuticals recently updated its Phase 2 datasets for TFF TAC and TFF VORI, highlighting significant findings. The data revealed that TFF TAC demonstrated high efficacy and was substantially safer than oral tacrolimus in a study involving eight lung transplant patients. Oral tacrolimus had been linked to unacceptable levels of kidney toxicity in all eight participants.

The company is considering strategies to maximize its product pipeline, which may include outlicensing TFF VORI. This would allow TFF Pharmaceuticals to concentrate its efforts on the development of TFF TAC. The decision to adjust the model and revise the price target to $36 was influenced by these recent updates and strategic considerations.

The firm’s analyst cited the promising results of TFF TAC in the lung transplant patients as a key factor in maintaining the Buy rating. This optimism is tempered by the need for TFF Pharmaceuticals to manage its cash reserves and potential partnerships strategically.

InvestingPro Insights

As TFF Pharmaceuticals (NASDAQ:TFFP) strategizes its future moves, a glance at the real-time data from InvestingPro reveals some critical financial metrics. The company holds a market capitalization of $15.22 million, which is reflective of its size in the biopharmaceutical industry. Despite the challenges, TFFP’s balance sheet shows resilience with more cash than debt, which aligns with the company’s reported pro forma cash position that could fund operations into the second quarter of 2024. However, the company is not yet profitable, with a negative P/E ratio of -0.73 for the last twelve months as of Q4 2023, and it does not pay dividends to shareholders.

InvestingPro Tips highlight the company’s rapid cash burn and the recent hit taken by the stock, with a one-week price total return of -18.38%. Yet, with liquid assets surpassing short-term obligations, TFFP appears to be in a position to manage its immediate financial commitments. These insights could be crucial for investors considering the long-term potential and current operational stability of TFFP. Moreover, for those looking to delve deeper, there are additional tips available on InvestingPro, which could provide further guidance on the stock’s outlook. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for access to these valuable insights.

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