Scotiabank Initiates Coverage on Palvella Therapeutics

Scotiabank has initiated coverage of Palvella Therapeutics with a Sector Outperform recommendation. The average price target suggests a notable upside potential of 56.84% based on recent data.

Date: 08-03-2025

AI Rating: 7

Analyst Recommendations and Price Targets
Scotiabank's initiation of coverage with a Sector Outperform recommendation indicates a favorable outlook for Palvella Therapeutics. The average one-year price target of $38.50/share represents a potential increase of 56.84% from the latest closing price of $24.55/share. This substantial upside could contribute positively to investor sentiment and possibly influence stock prices positively.

Projected EPS
The projected annual non-GAAP EPS is reported at -0.30. While this suggests the company is currently operating at a loss, analysts may view the growth potential as more significant in the longer term given the positive price target. If the company manages to turn this metric around in future quarters, it could result in upward pressure on stock prices.

Institutional Sentiment
The increase of 33 new owners or a significant 550% in the last quarter indicates a growing institutional interest in Palvella Therapeutics. With 39 funds reporting positions, the bullish sentiment surrounding the stock is reinforced by its low put/call ratio of 0.16, suggesting that investors are optimistic. Institutions often have a considerable impact on stock prices, and their confidence could further enhance demand and drive prices upwards if their outlook turns beneficial.

Conclusion
Overall, while the EPS indicates current struggles in profitability, the favorable analyst recommendations combined with institutional accumulation presents a compelling case for potential price appreciation in Palvella Therapeutics in the near future.

Stocks: PVLA