Last Updated: 19 Sep 2024
Executive Summary
Akebia Therapeutics (AKBA) is a biopharmaceutical company focused on developing and commercializing kidney therapies. Despite a challenging market environment, the company's strong fundamentals, promising pipeline, and analyst support suggest potential for long-term growth.
Company Overview
Akebia is headquartered in Cambridge, Massachusetts, and is dedicated to improving the lives of kidney disease patients. The company's lead product, Auryxia, is an injectable therapy for anemia associated with chronic kidney disease. Akebia is also developing vadadustat, an oral therapy for anemia in patients with chronic kidney disease, and other novel therapies.
Fundamental Analysis
Revenue: Revenue for the trailing twelve months (TTM) reached $174.5 million, reflecting a 0.226% year-over-year decline.
Earnings: The company reported a diluted EPS of -$0.21 for the TTM, indicating a loss.
Profitability: Akebia's profit margin and operating margin are both negative, suggesting the company is currently operating at a loss.
Valuation: The company's market capitalization is $283.9 million, with a price-to-sales ratio of 1.627.
Technical Analysis
Price Action: The stock price is currently trading at $1.37, within its 52-week range of $0.78 to $2.48.
Moving Averages: The 50-day moving average is $1.38, providing support, while the 200-day moving average is $1.367, indicating a slight bullish trend.
Technical Indicators: The relative strength index (RSI) is around 43, suggesting the stock is neither overbought nor oversold.
Short Term Outlook
Earnings: The company is expected to report earnings in August 2024. Analysts estimate a loss per share of -$0.23.
Revenue: Revenue is expected to decline slightly in the short term due to competitive pressures.
Price Target: The average analyst target price is $5.5, implying a potential upside of 302.92%.
Long Term Outlook
Pipeline: Akebia's pipeline of novel therapies, including vadadustat, holds promise for future growth.
Market Opportunity: The market for kidney disease therapies is growing, providing opportunities for Akebia to expand its market share.
Competition: The company faces intense competition from established players, which could impact its long-term profitability.
Analyst Recommendations
Strong Buy: 1 analyst
Buy: 2 analysts
Hold: 0 analysts
Sell: 0 analysts
Strong Sell: 0 analysts
Conclusion
Akebia Therapeutics is a promising company with a strong pipeline and a focus on a growing market. While the company is currently operating at a loss, its long-term potential is supported by analyst recommendations and a favorable technical outlook. Investors should consider the company's risk profile and monitor its progress before making investment decisions.
