In a research report issued today, Brean Capital analyst Difei Yang shared her expectations on Pernix Therapeutics Holdings Inc (NASDAQ:PTX), ahead of the company’s upcoming second-quarter results. The analyst also reiterated a Buy rating on Pernix stock with a price target of $17, which represents a potential upside of 208% from where the stock is currently trading.
Yang wrote, “Because of commercial challenges experienced by Pernix on Treximet, coupled with wholesaler inventory adjustments during Q1, revenue likely declined significantly quarter over quarter. We see Q2 prescription demand as having stabilized for Treximet. However, we are less certain if the wholesaler inventory adjustment is completely behind us. Therefore, we decided to take a very conservative approach in forecasting and have reduced our Q2 revenue estimate from $50.0 million to $44.3 million. As a result, non-GAAP EPS was revised from $0.01 to ($0.01).”
“Given the operational hiccups experienced by Pernix, we believe it would take a couple of quarters to catch up. As such, we believe while the full year guidance is achievable, it is unreasonable to have high expectations for Q2.”, the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Difei Yang has a total average return of 30.7% and a 60.3% success rate. Yang has a -4.9% average return when recommending PTX, and is ranked #76 out of 3713 analysts.