In a report released on February 15, Joseph Schwartz from Leerink Partners maintained a Buy rating on Aurinia Pharmaceuticals (AUPH – Research Report), with a price target of $15.00.
Joseph Schwartz has given his Buy rating due to a combination of factors, primarily centered around Aurinia Pharmaceuticals’ drug Lupkynis and its commercial performance. Despite the market’s disappointment following the conclusion of the strategic review process without a sale, Schwartz’s evaluation hinges on the solid launch and consistent momentum of Lupkynis. He views the removal of the merger and acquisition (M&A) premium from the stock price as a refocusing moment, where the company’s valuation can now more accurately reflect its operational success rather than speculative buyout opportunities. With the stock price dropping significantly, Schwartz sees an undervalued opportunity given the strong sales trajectory and clear guidance provided by Aurinia.
Schwartz’s confidence is bolstered by the company’s decision to streamline operations, cutting costs by discontinuing early-stage pipeline development and implementing a substantial stock repurchase program. These measures are expected to yield significant annual savings and position Aurinia to generate free cash flow by year-end. The maintained revenue guidance and the anticipation of continued strong sales for Lupkynis reinforce his positive outlook. Thus, without considering M&A prospects, Schwartz’s $15 price target is anchored solely on the revenue potential of Lupkynis, which he believes supports an Outperform rating for Aurinia Pharmaceuticals.
Schwartz covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, Travere Therapeutics, and Ascendis Pharma. According to TipRanks, Schwartz has an average return of 2.3% and a 44.08% success rate on recommended stocks.
In another report released on February 15, TD Cowen also maintained a Buy rating on the stock with a $11.00 price target.
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Aurinia Pharmaceuticals (AUPH) Company Description:
Aurinia Pharmaceuticals, Inc. operates as a clinical stage biopharmaceutical company, which engages in the development of a therapeutic drug to treat autoimmune diseases particularly lupus nephritis. The company was founded by Robert Foster, Richard Glickman and Michael Martin on June 16, 1993 and is headquartered in Victoria, Canada.
Read More on AUPH:
- New Corporate Activity and Growth Risk for Aurinia Pharmaceuticals – What’s the Latest?
- Aurinia Pharmaceuticals Announces Strategic Review Outcomes and Buyback Program
- Aurinia Pharmaceuticals sees 2024 revenue $200M-$220M, consensus $217.87M
- Aurinia Pharmaceuticals reports Q4 EPS (19c), consensus (16c)
- AUPH Earnings this Week: How Will it Perform?
