Last Updated: 19 Sep 2024
Executive Summary
Cara Therapeutic (CARA) is a clinical-stage biopharmaceutical company focused on developing and commercializing treatments for itching and pain. Despite strong revenue growth in the past, the company has faced challenges in recent quarters, with revenue declining in the latest quarter. The stock price has fallen significantly in the past year, and analysts are mostly neutral on the stock.
Company Overview
Cara Therapeutics is headquartered in Stamford, Connecticut, and was founded in 2004. The company's lead product candidate is Korsuva, a treatment for pruritus associated with chronic kidney disease. Korsuva was approved by the FDA in 2021 and is currently being commercialized in the US. Cara Therapeutics is also developing other product candidates for the treatment of pain and inflammation.
Fundamental Analysis
Cara Therapeutics' financial performance has been mixed in recent quarters. Revenue grew by 10% in 2022, but declined by 0.857% in the latest quarter. The company has yet to achieve profitability, and its net loss widened in the latest quarter.
Technical Analysis
The technical analysis of Cara Therapeutics' stock price shows that the stock has been in a downtrend in the past year. The stock price is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
The short-term outlook for Cara Therapeutics is uncertain. The company is facing challenges in commercializing Korsuva, and its financial performance has been mixed. The stock price is likely to remain volatile in the near term.
Long Term Outlook
The long-term outlook for Cara Therapeutics is more positive. The company has a promising pipeline of product candidates, and it is expected to achieve profitability in the future. The stock price is likely to recover in the long term, as the company executes on its growth strategy.
Analyst Recommendations
Analysts are mostly neutral on Cara Therapeutics. Six analysts have a hold rating on the stock, while no analysts have a strong buy or buy rating. The average analyst target price is $1.00.
