Analyst Upgrades This Stock And Doubles Price Target On Encouraging Ibsrela Story

After the market close Thursday, Ardelyx Inc ARDX reported Q4 FY22 Ibsrela sales of $8.7 million and $15.6 million for FY22.
The company earned $35 million in collaboration revenue due to milestone payments and payments under the 2022 amendment to the license agreement between Ardelyx and Kyowa Kirin Co Ltd.
ARDX held cash, cash equivalents, and short-term investments of $123.9 million.
The company reported an EPS of $0.06, compared to an EPS loss of $(0.31) a year ago.
Wedbush upgraded the stock to Outperform from Neutral and raised the price target from $3 to $6.
The analyst writes that Ibsrela continues to march upward following the 4Q22 report steadily, and with Xphozah's regulatory path starting to become clear.
A downside risk of around ~$1/share could be realized if Ibsrela commercial efforts fail to generate further uptake and the tenapanor is derailed again.
Following the 4Q22 report, the analyst is increasing FY23 Ibsrela revenue estimates and assigning a higher Xphozah price point.
Cash runway remains an important consideration; however, Ibsrela revenue acceleration helps offset burn, as does gaining access to the remaining $22.5 million available under the credit facility.
Price Action: ARDX shares are up 34.95% at $3.90 on the last check Friday.

Earnings Calendar