Analyst Upgrades This Stock And Doubles Price Target On Encouraging Ibsrela Story

• After the market close Thursday, Ardelyx Inc (NASDAQ: ARDX) reported Q4 FY22 Ibsrela sales of $8.7 million and $15.6 million for FY22.

• The company earned $35 million in collaboration revenue due to milestone payments and payments under the 2022 amendment to the license agreement between Ardelyx and Kyowa Kirin Co Ltd.

• ARDX held cash, cash equivalents, and short-term investments of $123.9 million.

• The company reported an EPS of $0.06, compared to an EPS loss of $(0.31) a year ago.

• Wedbush upgraded the stock to Outperform from Neutral and raised the price target from $3 to $6.

• The analyst writes that Ibsrela continues to march upward following the 4Q22 report steadily, and with Xphozah’s regulatory path starting to become clear.

• A downside risk of around ~$1/share could be realized if Ibsrela commercial efforts fail to generate further uptake and the tenapanor is derailed again.

• Following the 4Q22 report, the analyst is increasing FY23 Ibsrela revenue estimates and assigning a higher Xphozah price point.

• Cash runway remains an important consideration; however, Ibsrela revenue acceleration helps offset burn, as does gaining access to the remaining $22.5 million available under the credit facility.

• Price Action: ARDX shares are up 34.95% at $3.90 on the last check Friday.

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