H.C. Wainwright has revised its price target for Prothena (PRTA, Financial), lowering it from $48 to $30 while maintaining a Buy rating for the stock. The adjustment reflects a recalibration of the stock's valuation multiples in response to changing investor sentiment, increased capital costs, and a decreased interest in early-stage clinical risks.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Prothena Corp PLC (PRTA, Financial) is $51.25 with a high estimate of $110.00 and a low estimate of $18.00. The average target implies an upside of 621.83% from the current price of $7.10. More detailed estimate data can be found on the Prothena Corp PLC (PRTA) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Prothena Corp PLC's (PRTA, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Prothena Corp PLC (PRTA, Financial) in one year is $27.05, suggesting a upside of 280.99% from the current price of $7.1. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Prothena Corp PLC (PRTA) Summary page.
PRTA Key Business Developments
Release Date: February 20, 2025
- Net Cash Used in Operating and Investing Activities: $150.3 million, at the low end of guidance range ($148 to $160 million).
- Net Loss: $122.3 million, at the low end of guidance range ($120 to $135 million).
- Cash, Cash Equivalents, and Restricted Cash: $472.2 million as of December 31, 2024, in line with guidance of $468 million.
- Ordinary Shares Outstanding: Approximately 53.8 million as of February 20, 2025.
- Debt: Zero debt.
- 2025 Financial Guidance - Net Cash Used in Operating and Investing Activities: Expected to be between $168 and $175 million.
- 2025 Financial Guidance - Year-End Cash, Cash Equivalents, and Restricted Cash: Expected to be approximately $301 million.
- 2025 Financial Guidance - Estimated Net Loss: $197 to $205 million, including $41 million of non-cash share-based compensation expense.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Prothena Corp PLC (PRTA, Financial) has a robust portfolio of therapeutic drug candidates targeting neurodegenerative and rare peripheral amyloid diseases, with 4 wholly owned and 4 partner programs in various stages of clinical development.
- The company's wholly owned clinical programs are nearing significant inflection points in 2025, setting up a transformational year.
- Prothena's drug candidate, Fortamumab, has shown early survival benefits in AL amyloidosis, with potential for a US launch by the second half of 2026.
- Prothena's Alzheimer's disease portfolio includes PRX 12 and PRX 123, with PRX 12 designed for easy at-home administration, potentially improving treatment access.
- The company has strong financials, with $472.2 million in cash and no debt, providing a solid foundation for future growth and development.
Negative Points
- Prothena Corp PLC (PRTA) faces significant competition in the amyloidosis and Alzheimer's treatment markets, which could impact market share and revenue potential.
- The company's reliance on partnerships for some of its programs may limit its control over development timelines and outcomes.
- Prothena's financial guidance for 2025 indicates an expected net loss of $197 to $205 million, reflecting ongoing high costs associated with clinical development.
- The company's success is heavily dependent on the outcomes of clinical trials, which carry inherent risks and uncertainties.
- Regulatory approval processes for Prothena's drug candidates are complex and may face delays, impacting commercialization timelines.
