Liquidia’s shares come under scrutiny following a Zacks Research downgrade, despite the company’s steady revenue growth and profit achievements, with Wall Street analysts divided on its future prospects.
Liquidia shares came under a fresh analyst review on Saturday after Zacks Research cut its view on the North Carolina drugmaker to hold from strong buy, adding to a mixed run of Wall Street calls around the stock.
The downgrade comes as analysts continue to split over the company’s prospects. MarketBeat said Weiss Ratings kept a sell grade on Liquidia in July, while Stephens set a $130 target and Needham lifted its own target to $110 with a buy recommendation. Bank of America also raised its target to $92, but stayed neutral, leaving the overall consensus at hold with an average target of $98.08.
The debate comes against the backdrop of a sharp commercial ramp-up. Liquidia’s first-quarter presentation showed total revenue of $132.87 million, with net product sales of $129.9 million and the company’s third straight profitable quarter. The presentation also showed cash of $222.8 million, giving the company more room to fund its respiratory drug portfolio.
Recent updates have nonetheless underscored how quickly expectations can shift. MarketBeat noted that Liquidia’s second-quarter adjusted earnings of $0.74 per share fell short of the $0.76 forecast, even though revenue beat estimates at $171.68 million. The company also said it is aiming for more than $1 billion in net revenue in 2027 as Yutrepia gains market share, but investors have remained sensitive to valuation and forecast revisions.
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