Guggenheim Initiates Buy on Zevra Therapeutics with 177.59% Upside

A recent report highlights Guggenheim initiating coverage of Zevra Therapeutics with a buy recommendation, projecting a significant upside of 177.59% in stock price while noting an impressive revenue growth of 82.90%.

Date: 08-10-2024

AI Rating: 7

The report mentions Guggenheim's initiation of coverage for Zevra Therapeutics (ZVRA) with a Buy recommendation. This positive outlook suggests analysts believe the company's stock has strong upside potential, specifically a projected rise of 177.59% from its current price of $7.79 to an average target of $21.62.

Additionally, the analysis reveals that Zevra Therapeutics is expected to see its annual revenue grow by 82.90%, indicating strong performance and potential market confidence. While the expected annual non-GAAP EPS stands at -0.43, which could be seen as a concern, the significant revenue growth may offset current earnings concerns.

Investor sentiment appears optimistic, as highlighted by a growth in institutional ownership. The report states that the number of funds reporting positions in Zevra increased by 5.62% in the last quarter, demonstrating growing interest in the company among institutional investors. Moreover, total shares owned by institutions rose 16.14% to 16,737K shares.

The put/call ratio of 0.17 further confirms the bullish outlook, indicating that investors are more interested in buying calls than puts, aligning with the analysts' positive sentiments.

In conclusion, while the projected negative EPS might be a slight red flag, the substantial increase in revenue expectations and institutional support reflect a generally strong outlook for Zevra Therapeutics, likely bolstering its stock performance in the near future.

Stocks: ZVRA