Last Updated: 17 Oct 2024
Executive Summary
Capricor Therapeutics Inc. (CAPR) is a clinical-stage biotechnology company developing cell- and exosome-based therapies for various diseases. Despite a promising pipeline, CAPR faces challenges with profitability and a high beta indicating high volatility. The stock has a current price of $20.51, with a market capitalization of $763.3 million.
Company Overview
Capricor Therapeutics focuses on developing therapies for cardiovascular diseases, inflammatory diseases, and regenerative medicine. The company's lead product candidate, CAP-1002, is in Phase III trials for the treatment of Duchenne muscular dystrophy. Capricor also has a pipeline of preclinical and early-stage clinical programs.
Fundamental Analysis
Financials: CAPR reported a net loss of $28.7 million in the latest quarter, with an EPS of -$0.89. Revenue for the quarter was $27.2 million, representing a 1.4% year-over-year increase.
Profitability: The company has consistently reported negative profit margins, with an operating margin of -2.92% and a net profit margin of -1.03% in the latest quarter.
Valuation: CAPR has a trailing Price-to-Sales (P/S) ratio of 28.11 and a Price-to-Book (P/B) ratio of 60.15, indicating a premium valuation relative to peers.
Technical Analysis
Trend: CAPR has been trading in a downward trend since late 2021.
Support and Resistance: Key support levels are at $15 and $10, while resistance levels are at $25 and $30.
Moving Averages: The stock is currently trading below its 50-day and 200-day moving averages, indicating a bearish trend.
Short Term Outlook
In the short term, CAPR is likely to remain volatile, with potential downside risks due to its high beta. The stock may face resistance at the $25 level and could retest support at $15.
Long Term Outlook
The long-term outlook for CAPR depends on the success of its clinical trials and its ability to achieve profitability. If CAP-1002 and other pipeline candidates prove successful, the company could see significant growth potential. However, the high valuation and negative profitability remain concerns.
Analyst Recommendations
Analysts have a mixed view on CAPR. Two analysts have a "Strong Buy" rating, three have a "Buy" rating, and none have a "Hold," "Sell," or "Strong Sell" rating. The average analyst target price is $39, implying a potential upside of 90%.
