Scotiabank Initiates Coverage of Ardelyx with Strong Upside

Scotiabank has initiated coverage of Ardelyx with a Sector Outperform recommendation. The analysis shows an anticipated 93.66% upside, but also indicates a revenue drop of 25.93% and a non-GAAP EPS of -0.07, which could impact investor sentiment.

Date: 08-03-2025

AI Rating: 5

Stock Coverage Initiation: Scotiabank's initiation of coverage on Ardelyx with a Sector Outperform recommendation suggests a positive outlook from analysts. This recommendation can attract investors, potentially raising the stock's price.

Price Forecast: The average one-year price target for Ardelyx is $10.26, which indicates a significant potential upside of 93.66% from the last reported closing price of $5.30. This positive sentiment may result in increased buying activity, positively impacting the stock price.

Projected Revenue: However, the projected annual revenue for Ardelyx is $247 million, which represents a decrease of 25.93%. This substantial decline in revenue could evoke concerns about the company's growth potential and financial health, possibly leading to a negative impact on stock prices.

Earnings Per Share (EPS): The projected non-GAAP EPS is reported as -0.07. A negative EPS indicates the company is expected to incur losses, which could deter potential investors and negatively affect the stock’s appeal.

Institutional Interest: There are 381 funds reporting positions in Ardelyx, although the number of owners has slightly decreased by 0.26% in the last quarter. The average portfolio weight for ARDX has increased by 4.70%, signaling cautious optimism among institutional investors. Additionally, the total shares owned by institutions increased by 5.08%, indicating some level of continued interest from larger investors.

Put/Call Ratio: The provided put/call ratio of 0.60 reflects a bullish outlook among options traders, which may signal confidence in future price increases for Ardelyx.

Stocks: ARDX