STA Research Assigns Theratechnologies Inc.(TH:TSX) with a Speculative Buy rating and a target price of $3.40

Analysts rate Theratechnologies Inc. with a consensus Hold rating and a 12-month average target price of $3.25 per share.

STA Research Assigns Theratechnologies Inc. with a Speculative Buy rating and a target price of $3.40 per share.

Based on the Theratechnologies stock forecast from 1 analyst, the average analyst target price for Theratechnologies Inc. is CAD 3.25 over the next 12 months. Theratechnologies Inc.’s average analyst rating is Hold . Stock Target Advisor’s own stock analysis of Theratechnologies Inc. is Bearish, which is based on 1 positive signals and 9 negative signals. At the last closing, Theratechnologies Inc.’s stock price was CAD 2.84Theratechnologies Inc.’s stock price has changed by -5.02% over the past week, +3.27% over the past month and -39.96% over the last year.

About Theratechnologies Inc. (TH:CA:TSX)

Theratechnologies Inc., a biopharmaceutical company, focuses on the development and commercialization of various therapies to address the unmet medical needs in the United States, Canada, and Europe. The company offers EGRIFTA and EGRIFTA SV, for the reduction of excess abdominal fat in human immunodeficiency virus (HIV)-infected patients with lipodystrophy; and Trogarzo, an injection refers to ibalizumab for the treatment of multidrug resistant HIV-1 infected patients. Its pipeline products include F8 Formulation for the treatment of lipodystrophy in people living with HIV; TH1902, which is in Phase 1/Part A clinical trials for the treatment of triple negative breast cancer; and TH1904 for the treatment of ovarian cancer. The company was incorporated in 1993 and is headquartered in Montreal, Canada

What we like:

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Negative free cash flow

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.