Last Updated: 18 Sep 2024
Executive Summary
Edgewise Therapeutics Inc. (EWTX) is a biopharmaceutical company focused on developing small molecule therapies for musculoskeletal diseases. With a market capitalization of $1.69 billion, the company has a strong analyst consensus rating, with two Strong Buys and four Buys. The latest stock price of $18.08 is well below the analyst target price of $33.6.
Company Overview
Edgewise Therapeutics was founded in 2015 and is headquartered in Boulder, Colorado. The company's pipeline includes several drug candidates in various stages of development, targeting conditions such as osteoarthritis, rheumatoid arthritis, and spinal cord injury.
Fundamental Analysis
Edgewise Therapeutics is still in the early stages of commercialization, with no revenue reported to date. The company has a negative EBITDA of -$134.3 million and an EPS of -$1.53. However, the company has a strong cash position of $223.5 million, which provides it with ample runway to continue its research and development efforts.
Technical Analysis
EWTX has been trading in a range between $5.12 and $23.5 over the past 52 weeks. The stock is currently trading above its 50-day moving average of $18.86 but below its 200-day moving average of $16.38. The relative strength index (RSI) is at 54.5, indicating that the stock is in neutral territory.
Short Term Outlook
In the short term, EWTX is likely to continue trading within its current range. The company's upcoming earnings report on August 9th could provide a catalyst for movement in either direction. If the company reports positive results, the stock could rally towards the analyst target price. However, if the results are disappointing, the stock could decline.
Long Term Outlook
The long-term outlook for EWTX is positive. The company has a promising pipeline of drug candidates and a strong cash position. If the company can successfully commercialize its products, it has the potential to become a major player in the musculoskeletal disease market.
Analyst Recommendations
The analyst consensus rating for EWTX is Strong Buy. Two analysts have a Strong Buy rating, while four analysts have a Buy rating. The average analyst target price is $33.6, which represents a potential upside of over 86% from the current price.
