Highlights

  • Roth Capital lifts price target on VRNA from USD92 to USD116, maintaining a "Buy" rating
  • Consensus among 10 analysts remains "Buy" with average price target of USD91.11
  • Shares recently traded at USD90.92, near 52-week high of USD94.45

Roth Capital has reaffirmed its "Buy" rating on shares of Verona Pharma PLC American Depositary Share (NASDAQ: VRNA) while raising its price target to USD116 from the previously assigned USD92. The revised target was noted in a research report issued Wednesday morning, as reported by Benzinga.

This update from Roth Capital comes alongside similar moves by other brokerages in recent weeks. Jefferies Financial Group increased their target price to USD110 from USD95 and also maintained a "Buy" rating. Likewise, Cantor Fitzgerald now sees shares reaching USD100, up from USD90, assigning an “Overweight” outlook. Wells Fargo and HC Wainwright also updated their price targets, now forecasting USD107 and USD90, respectively, both retaining favorable outlooks.

Verona Pharma’s shares opened at USD90.92 on Wednesday, giving the company a market capitalization of approximately USD7.74 billion. The company is trading with a P/E ratio of -45.46 and has a beta of 0.21, indicating relatively low volatility compared to the broader market. Its recent earnings report for the quarter ended April 29th beat estimates, posting USD0.27 EPS against an expected loss of USD0.22, with revenues coming in at USD98.65 million, well above analyst forecasts.

Despite the positive analyst sentiment, insider trading activity has drawn some attention. General Counsel Andrew Fisher and CEO David Zaccardelli sold shares in April, resulting in modest percentage decreases in their respective holdings. Over the last 90 days, insiders have sold nearly USD20 million worth of stock.

Institutional interest in Verona Pharma remains high, with nearly 86% of the stock held by investment firms and hedge funds. Notable adjustments include increased positions by Townsquare Capital, Geneos Wealth Management, and Advisors Preferred LLC.

Verona Pharma is engaged in late-stage clinical development of therapies for respiratory diseases. Its lead candidate, ensifentrine, is under Phase 3 trials for indications including chronic obstructive pulmonary disease (COPD), asthma, and cystic fibrosis.