EyePoint Pharmaceuticals: Maintaining Buy Rating Amidst Progress and Trials

Analyst Yi Chen from H.C. Wainwright reiterated a Buy rating on EyePoint Pharmaceuticals (EYPT – Research Report) and decreased the price target to $30.00 from $33.00.

Yi Chen has given his Buy rating due to a combination of factors related to EyePoint Pharmaceuticals’ operational and drug development progress. While the company reported a net loss of $29.3 million for 1Q24, which was higher than the projected loss, its revenue exceeded expectations. Importantly, the company’s key drug candidate, DURAVYU (EYP-1901), for wet age-related macular degeneration (AMD), is on track to begin Phase 3 trials in the second half of 2024. This progress, along with an anticipated update following discussions with the FDA, contributes positively to the analyst’s outlook. Additionally, the expectation of topline data from the Phase 2 VERONA trial for diabetic macular edema (DME) in early 2025 supports the company’s potential future growth.
Moreover, despite the Phase 2 PAVIA trial in non-proliferative diabetic retinopathy (NPDR) not meeting its primary endpoint, this result did not significantly impact the valuation model as NPDR was not included. The company also plans further analysis with longer-term data, leaving room for potential positive outcomes. Chen’s valuation of the firm stands at $1.56 billion, with a corresponding price target of $30 per share, slightly adjusted from the previous target of $33. The combined factors of upcoming trial initiations, expected data readouts, and the company’s current valuation underpin Chen’s continued Buy rating for EyePoint Pharmaceuticals.

In another report released on May 8, Capital One Financial also assigned a Buy rating to the stock with a $35.00 price target.

Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of EYPT in relation to earlier this year.

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EyePoint Pharmaceuticals (EYPT) Company Description:

EyePoint Pharmaceuticals, Inc. is a biopharmaceutical company. It engages in the development and commercializing of ophthalmic products. It offers FDA-approved sustained-release treatments in ophthalmology under the DEXYCU, ILUVIEN, Verisome, Retisert, and Durasert brands. The company was founded in 1987 and is headquartered in Watertown, MA.