Last Updated: 12 Sep 2024
Executive Summary
Aurinia Pharmaceuticals Inc. (AUPH) is a biopharmaceutical company developing and marketing therapies for unmet medical needs in Japan and China. Despite strong revenue growth, the company faces challenges with profitability, with a negative EBITDA and EPS. However, analysts remain optimistic, with a majority rating the stock as a Buy or Strong Buy and an analyst target price of $9.83.
Company Overview
Aurinia Pharmaceuticals is headquartered in Canada and focuses on developing and commercializing treatments for autoimmune and kidney diseases. The company's lead product, Lupkynis, is approved for treating lupus nephritis in the US and Europe.
Fundamental Analysis
Revenue: AUPH reported revenue of $207.1 million in the trailing twelve months, representing a 37.8% year-over-year growth.
Profitability: The company has been operating at a loss, with an EBITDA of -$27.1 million and an EPS of -$0.35.
Valuation: AUPH trades at a forward PE ratio of 13.59, a price-to-sales ratio of 4.51, and a price-to-book ratio of 2.56.
Technical Analysis
Trend: The stock is currently trading above its 50-day and 200-day moving averages, indicating a bullish trend.
Support and Resistance: Key support levels are at $5.98 (50-day MA) and $4.71 (52-week low), while resistance levels are at $6.37 (200-day MA) and $10.05 (52-week high).
Momentum: The Relative Strength Index (RSI) is above 50, indicating positive momentum.
Short Term Outlook
In the short term, AUPH is expected to continue its positive momentum, supported by strong revenue growth and analyst optimism. The stock could face resistance at $6.37, but a breakout above this level could lead to further gains.
Long Term Outlook
The long-term outlook for AUPH depends on the company's ability to improve profitability and expand its product portfolio. Lupkynis has the potential to be a blockbuster drug, but the company needs to demonstrate its long-term efficacy and safety.
Analyst Recommendations
Analysts are generally positive on AUPH, with a majority rating the stock as a Buy or Strong Buy. The average analyst target price is $9.83, implying a potential upside of over 50%.
Disclaimer
This report is for informational purposes only and should not be considered investment advice.
