H.C. Wainwright analyst Oren Livnat reiterated a Buy rating on MannKind (MNKD – Research Report) today and set a price target of $7.50.
Oren Livnat has given his Buy rating due to a combination of factors related to MannKind’s financial maneuvering and market potential. The recent monetization of a portion of their Tyvaso DPI royalties for a substantial upfront payment of $150 million, pointing to an implied valuation of Tyvaso DPI sales that exceeds current market reflections on MannKind’s stock, is a key aspect of his positive outlook. This deal not only injects significant capital but also indicates institutional investor confidence in the long-term revenue potential of Tyvaso DPI, despite upcoming competition.
Furthermore, the transaction bolsters MannKind’s balance sheet, providing them with the means to comfortably address their convertible debt and potentially pay it off early, which could alleviate the company’s financial constraints and allow greater focus on commercial and pipeline investments. Livnat’s analysis also considers the short interest related to convertible debt hedges and suggests that the capacity to clear this debt might lead to a more favorable stock outlook. Overall, the analyst envisions that these factors, coupled with MannKind’s promising revenue growth and market opportunities in the IPF indication, justify the current Buy rating.
In another report released on December 21, Oppenheimer also maintained a Buy rating on the stock with a $5.50 price target.
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MannKind (MNKD) Company Description:
MannKind Corp. is a biopharmaceutical company. It focuses on the discovery, development and, commercialization of therapeutic products for diseases, such as diabetes and cancer. The company was founded by Alfred E. Mann on February 14, 1991 and is headquartered in Westlake Village, CA.
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