Last Updated: 19 Sep 2024
Executive Summary
Summit Therapeutics PLC (SMMT) is a biopharmaceutical company focused on developing treatments for infectious diseases. Despite reporting negative earnings and a high price-to-sales ratio, SMMT has a strong analyst rating, with three analysts recommending a strong buy and one recommending a buy. The company's market capitalization is $19.27 billion, and its latest stock price is $24.56.
Company Overview
Summit Therapeutics is headquartered in Cambridge, Massachusetts, and discovers, develops, and markets drugs to treat infectious diseases in the United States, Latin America, and Europe. The company's primary product is ridinilazole, a novel antibiotic for the treatment of Clostridioides difficile infection (CDI).
Fundamental Analysis
Financially, SMMT has been reporting losses. The company's revenue for the latest quarter was $0, with a gross profit of $705,000 and a diluted EPS of -$0.11. SMMT has a negative EBITDA of -$143.59 million and a book value of $0.269. The company does not pay dividends.
Technical Analysis
Technically, SMMT is trading above its 50-day moving average of $13.03 and below its 200-day moving average of $6.61. The stock has a beta of -1.002, indicating that it is more volatile than the overall market. The 52-week high for SMMT is $33.89, and the 52-week low is $1.64.
Short Term Outlook
In the short term, SMMT's stock price is likely to remain volatile. The company's financial performance has been weak, and it is facing competition from other companies developing treatments for CDI. However, the strong analyst rating suggests that there is potential for upside in the stock price.
Long Term Outlook
In the long term, SMMT's success will depend on the commercial success of ridinilazole. If the drug is approved and widely adopted, it could generate significant revenue for the company. However, there is no guarantee that ridinilazole will be successful, and SMMT faces competition from other companies developing treatments for CDI.
Analyst Recommendations
Analysts are generally positive on SMMT. Three analysts recommend a strong buy, and one recommends a buy. The average analyst target price is $23.5, which implies a potential upside of 4.7% from the current stock price.
