Raymond James Rates INmune Bio with 296% Upside Potential

In a recent report, Raymond James has initiated coverage of INmune Bio with an Outperform rating, projecting a remarkable 296% upside from its current share price. The analysis highlights significant institutional interest and raises questions regarding the company's projected revenue and EPS.

Date: 28-09-2024

AI Rating: 4

The report presents a mixed picture regarding INmune Bio's financial outlook. While Raymond James initiated coverage with an Outperform recommendation fueled by a substantial upside potential, several critical financial metrics raise concerns amongst investors.

Earnings Per Share (EPS): The analysis indicates a projected annual non-GAAP EPS of -2.07. This negative EPS suggests that the company is currently in a loss-making position, which could deter investors looking for profitable companies.

Revenue Growth: The projected annual revenue for INmune Bio stands at 0MM, reflecting a decrease of 100.00%. This alarming statistic indicates that the company is expecting no revenue generation, signaling potential operational challenges and greatly limiting its ability to attract buyers.

Despite these red flags, institutional sentiment seems to be turning favorable, as evidenced by the increase in the number of funds reporting positions in INmune Bio. There has been a 27.78% increase in ownership among funds within the last quarter, along with an increase in the average portfolio weight and total shares owned.

The put/call ratio of 0.13 indicates a bullish outlook from options traders, suggesting that while fundamentals may be struggling, sentiment in the options market is more optimistic.

Investors should weigh the impressive analyst price forecast of 296.07% upside against the company's significant financial struggles. While this could indicate considerable potential upside, the lack of revenue and ongoing losses poses a high-risk investment proposition.

Stocks: INMB