Last Updated: 10 Nov 2024
## Executive Summary
Spero Therapeutics Inc. (SPRO) is a clinical-stage biopharmaceutical company focused on developing treatments for multidrug-resistant bacterial infections and rare diseases. The company has a market capitalization of $71.34 million, with a trailing PE ratio of 3.882. Spero's latest stock price is $1.32, which is below the analyst target price of $5. The company has shown strong quarterly earnings growth of 0.753% and revenue growth of 2.754% year-over-year.
## Company Overview
Spero Therapeutics was founded in 2005 and is headquartered in Cambridge, Massachusetts. The company's lead product candidate, SPR720, is a novel antibiotic that is being developed to treat multidrug-resistant Gram-negative bacterial infections. Spero also has a pipeline of other product candidates in various stages of development.
## Fundamental Analysis
Spero's financial performance has been improving in recent quarters. The company reported revenue of $118.46 million in the trailing twelve months, up from $115.15 million in the previous year. Gross profit was negative $42.11 million in the trailing twelve months, compared to negative $46.89 million in the previous year. Diluted EPS was $0.34 in the trailing twelve months, compared to $0.33 in the previous year.
## Technical Analysis
The technical analysis of SPRO's stock price shows that the stock is currently trading below its 50-day and 200-day moving averages. The stock has been in a downtrend since reaching a high of $1.89 in March 2023. The relative strength index (RSI) is currently at 30.82, which indicates that the stock is oversold.
## Short Term Outlook
The short-term outlook for SPRO is mixed. The stock is currently trading below its moving averages and is oversold. This suggests that the stock could continue to decline in the short term. However, the company's strong financial performance and analyst target price of $5 suggest that the stock could rebound in the long term.
## Long Term Outlook
The long-term outlook for SPRO is positive. The company has a strong pipeline of product candidates and is addressing a significant unmet medical need. If Spero can successfully develop and commercialize its products, the company could be well-positioned for long-term growth.
## Analyst Recommendations
The majority of analysts have a buy rating on SPRO. Four analysts have a buy rating, while none have a strong buy, hold, sell, or strong sell rating. The average analyst target price is $5.
