Aquestive Therapeutics Inc (AQST)

[DorseyE]

Aquestive Therapeutics



Market value: $116.5 million

TipRanks consensus price target: $17.00 (383% upside potential)

TipRanks consensus rating: Strong Buy

Aquestive Therapeutics' (AQST, $3.52) patented PharmFilm technology offers an effective drug delivery method that can be customized to meet the specific absorption, bioavailability and onset of action requirements. And following the company's preliminary fourth-quarter earnings release, in which it provided its first-time 2020 outlook, analysts remain with two feet on board.

Writing for RBC Capital, Randall Stanicky notes that while the guidance came in lower than he expected, he believes management is being conservative. Specifically, he points out that the company excluded contributions from Libervant, which will most likely go up for approval in late September, and said Parkinson's Disease treatment APL-130277 will only contribute a Q4 milestone payment.

Based on this development, Stanicky writes, "Our new estimates reflect these revisions though we see potential for numbers to move higher pending further visibility on Libervant launch timing and expectations."

"Overall, while our numbers have been revised modestly lower, our fundamental view of the story is unchanged; 2020 is set to be an inflection year with several updates that can drive the stock higher including anticipated approval of key value driver Libervant," continues Stanicky, who has an Outperform rating and $9 price target on AQST shares.

Stanicky's price target is the most conservative among analysts who have sounded off on this low-priced stock during the past three months. Three other Buy calls have included $10, $13 and even $36 targets, averaging out to a consensus PT of $17, or more than 380% upside over the next 52 weeks.