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Stifel Canada Raises Knight Therapeutics Price Target to $9.50 on Q1 Beat, Outlook

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Stifel Canada lifted its price target on the shares of Knight Therapeutics (GUD.TO) to C$9.50 from C$7.45 and reiterated its buy rating after the company reported a first-quarter earnings beat.

Analyst Justin Keywood notes that the stock has re-rated sharply year-to-date on better than expected contribution of the Paladin/Sumitomo acquisitions and the 30% Paladin headcount reduction.

"Q1 sales +68.5% y/y and EBITDA, +130%, demonstrates synergies and strength is expected to continue with record setting temperatures (Super El Nino) in the LATAM region, correlated to infectious disease product demand (~35% of Knight's portfolio)," Keywood writes.

Knight's runway of new launches in the coming one to two years, and "a bundling into its existing field force" could boost its long-term growth trajectory and FCF profile.

Price: $7.92, Change: $-0.14, Percent Change: -1.68%

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