H.C. Wainwright Thinks Veru Inc’s Stock is Going to Recover


H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Veru Inc (VERU) today and set a price target of $4.50. The company’s shares closed yesterday at $1.36, close to its 52-week low of $1.20.

Selvaraju observed:

“We note that the total revenue was less than our estimate of $13.7M due to the timing of FC2 public sector business. Public sector revenue was $3.9M in F1Q19. Management continues to expect fluctuation in the public sector, and expects to see revenue from Brazil tenders in fiscal 2Q-3Q19. Importantly, FC2 prescription business has seen significant growth in number of prescriptions during the quarter, according to Symphony Health data, and recorded $2.4M in revenue. In addition, due to the higher margin in prescription business, the company’s overall gross margin increased to 73% from 51% in prior-year period. We believe the momentum of FC2 prescription business could continue in the coming quarters and help smooth out the fluctuation in quarterly revenue.”

According to TipRanks.com, Selvaraju has currently no stars on a ranking scale of 0-5 stars, with an average return of -9.8% and a 32.7% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Biospecifics Technologies Corp, EyePoint Pharmaceuticals Inc, and Bausch Health Companies Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Veru Inc with a $6.83 average price target, which is a 402.2% upside from current levels. In a report released yesterday, Maxim Group also maintained a Buy rating on the stock with a $6 price target.

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Based on Veru Inc’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $2.15 million. In comparison, last year the company had a GAAP net loss of $4.26 million.

Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of VERU in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Veru, Inc. is a urology and oncology biopharmaceutical company, which engages in the development, manufacture and marketing of consumer health care products. It operates through the Commercial; and Research and Development segments.

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