Analysts Cut Price Targets As Heron Therapeutics' Zynrelef Disappoints In Q3
Heron Therapeutics Inc (NASDAQ: HRTX) reported a Q3 EPS loss of $(0.38), in line with consensus, with sales of $26.60 million missing the consensus of $26.96 million.
Needham notes it was another ugly quarter for Zynrelef with 3Q22 sales of $2.7 million (+8% Q/Q and +29% Y/Y) significantly short of the guided 40-50%Q/Q growth rate partly due to depressed surgery volumes (down ~11% Q/Q).
Needham analyst maintains its Buy rating, with a lower price target of $8 from $10, as investors will likely relegate Zynrelef to a "show me" story until it can consistently generate meaningful sales growth.
Zynrelef has significantly underperformed launch expectations with lower-than-expected unit demand and is also seeing pricing pressures.
Related: FDA Approves Heron Therapeutics' Post-Op Nausea Treatment.
Cantor Fitzgerald has lowered the price target on Heron from $12 to $10 with an Overweight rating.
The analyst notes the company guidance of 30-40% Zynrelef sales growth in 4Q22, over 3Q22, which would be viewed positively if the company can achieve that.
The analyst continues to believe in the potential of Zynrelef, and indicators do look promising; however, investors will need to see this translate to revenue pull-through in 2023, especially post the potential label expansion for Zynrelef.
Price Action: HRTX shares are down 8.41% at $3.16 on the last check Wednesday.
Latest Ratings for HRTX
Date | Firm | Action | From | To |
|---|---|---|---|---|
Dec 2020 | SVB Leerink | Maintains | Outperform | |
May 2020 | Guggenheim | Initiates Coverage On | Buy | |
Mar 2020 | Needham | Maintains | Buy |
View More Analyst Ratings for HRTX
View the Latest Analyst Ratings
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