Growth Potential Drives Buy Rating for Celcuity Despite Current Losses

Analyst Swayampakula Ramakanth of H.C. Wainwright maintained a Buy rating on Celcuity (CELC – Research Report), retaining the price target of $27.00.

Swayampakula Ramakanth has given his Buy rating due to a combination of factors surrounding Celcuity’s progress and potential in drug development. Despite reporting no revenues and a net loss, Ramakanth sees potential growth through the company’s ongoing clinical trials, particularly with gedatolisib in treating HR+/HER2- advanced breast cancer. The expectation of topline data from the ongoing Phase 3 VIKTORIA-1 study in the second half of 2024, and from another patient subgroup in the first half of 2025, fuels optimism. The clarity on the study’s enrollment criteria and the potential for a clinically meaningful improvement in progression-free survival are key points that underpin Ramakanth’s positive outlook on the stock.

Moreover, Ramakanth’s valuation is based on a risk-adjusted net present value analysis of projected future revenues from gedatolisib, despite the company currently reporting losses. The substantial cash and cash equivalents held by Celcuity are seen as sufficient to fund their research until significant clinical data becomes available, which could serve as a meaningful catalyst for the stock. The analyst also underscores the continued enrollment and dosing for a study evaluating gedatolisib for a prostate cancer indication, with preliminary data expected in the first half of 2025. These factors collectively contribute to a maintained Buy rating and a 12-month price target of $27.00 per share, reflecting a belief in Celcuity’s future success despite the current financial losses and associated risks.

According to TipRanks, Ramakanth is a 4-star analyst with an average return of 8.6% and a 39.48% success rate. Ramakanth covers the Healthcare sector, focusing on stocks such as Elevation Oncology, Rewalk Robotics, and Ocugen.

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Celcuity (CELC) Company Description:

Celcuity, Inc. is cellular analysis company. The company discovers new cancer sub-types and commercializing diagnostic tests designed to improve the clinical outcomes of cancer patients treated with targeted therapies. Its proprietary CELx diagnostic platform is the commercially ready technology that uses a patient’s living tumor cells to identify the specific abnormal cellular process driving a patient’s cancer and the targeted therapy that treats it. The company was founded in January 2012 by Brian Sullivan and Lance Laing and is headquartered in Minneapolis, MN.