H.C. Wainwright analyst Oren Livnat reiterated a Buy rating on Cara Therapeutics (CARA) today and set a price target of $26. The company’s shares opened today at $19.12.
Livnat observed:
“Our $26 price target is based on a 75% probability of success adjusted-DCF analysis including just Korsuva U.S. sales in CKD-aP, comprising peak IV Korsuva annual sales of $550M in the hemodialysis population, and $300M peak oral Korsuva sales in Stage 3-5 CKD (the latter even further risk-adjusted to <$100M in our model at 30% probability of success pre-Phase 2). Our DCF reflects an 11% WACC discount and 0% terminal growth beyond 2028. If our DCF valuation with IV Korsuva entirely de-risked (and oral still at 30%), all else equal, would yield a CKD-aP driven valuation of $35/share. That does not yet include any explicit value for Korsuva ex-U.S."
According to TipRanks.com, Livnat is a 4-star analyst with an average return of 10.8% and a 55.8% success rate. Livnat covers the Healthcare sector, focusing on stocks such as Verrica Pharmaceuticals Inc, Taiwan Liposome Company Ltd, and Pacira Pharmaceuticals.
Currently, the analyst consensus on Cara Therapeutics is a Strong Buy with an average price target of $25.17, a 31.6% upside from current levels. In a report issued on February 27, Jefferies also reiterated a Buy rating on the stock with a $22 price target.
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Based on Cara Therapeutics’ latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $20.65 million. In comparison, last year the company had a GAAP net loss of $14.18 million.
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CARA Therapeutics, Inc. engages in the research, development, and commercialization of pharmaceutical products. Its portfolio includes opioid-based products, anesthetic-based drugs, and analgesics that targets to alleviate itch and pain.
