Heron Therapeutics Cuts Price Target to $4, Retains Buy Rating After Q1 Miss
Heron Therapeutics retained a buy rating from H.C. Wainwright while cutting its price target to $4 from $6 after Q1 revenue of $34.71 million, a 3.9% shortfall, and a $0.04 per-share loss. Management reaffirmed 2026 revenue guidance of $173–183 million and Adjusted EBITDA, driven by 32% Acute Care franchise growth.
1. Buy Rating and Price Target Cut
H.C. Wainwright maintained its buy rating for Heron Therapeutics but lowered the price target from $6.00 to $4.00, reflecting cautious optimism despite recent challenges in the company’s commercial performance.
2. Q1 Revenue and Loss Details
Heron reported first-quarter revenue of $34.71 million, missing analyst estimates by 3.9%, and recorded a net loss of $0.04 per share, wider than the $0.03 expected loss and down from $0.01 per share earnings in the prior year period.
3. Guidance Reaffirmation and CEO Remarks
Management attributed the shortfall to seasonal dynamics, insurance reimbursement adjustments, and severe weather disruptions, describing these as external and temporary, and maintained full-year revenue guidance of $173 million to $183 million with Adjusted EBITDA expected between $10 million and $20 million.
4. Acute Care Franchise Performance
Heron’s Acute Care franchise grew 32% year-over-year, led by a 27% increase in ZYNRELEF sales and a 50% jump in APONVIE, with net sales recovering above $15 million in March, signaling a rebound after early-year headwinds.