H.C. Wainwright upbeat on Black Diamond stock, cites steady financials

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On Monday, H.C. Wainwright showed confidence in Black Diamond Therapeutics (NASDAQ:), raising the 12-month price target from $11.00 to $12.00, while keeping a Buy rating on the stock. The firm acknowledged the company’s recent financial performance, noting the reported net loss was consistent with expectations.

Black Diamond Therapeutics, earlier this month, disclosed its financial results for the year 2023. The company posted a net loss of $1.88 per share, which was closely aligned with the anticipated net loss of $2.01 per share projected by H.C. Wainwright.

The reported research and development (R&D) and selling, general and administrative (SG&A) expenses totaled approximately $59.4 million and $27.1 million, respectively. These figures came in under the firm’s previous estimates, which were $61.3 million for R&D and $29.6 million for SG&A expenses.

Looking forward, the analyst from H.C. Wainwright has modified the forecast for Black Diamond’s full-year 2024 net loss, adjusting the projection to $2.01 per share from the earlier estimate of $2.17 per share. This updated forecast takes into account the company’s current financial trajectory and the analyst’s expectations for the upcoming year.

The decision to increase the price target comes after a thorough analysis using a discounted cash flow (DCF) valuation method. By advancing the valuation timeframe, the firm has reaffirmed its Buy rating for Black Diamond Therapeutics. This adjustment reflects a modest yet positive outlook on the company’s stock value over the next year.

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