Plus Therapeutics: Maxim Group maintains Buy, PT down to $3 from $4.

Plus Therapeutics: Maxim Group maintains Buy, PT down to $3 from $4.

Maxim Group has revised its price target for Plus Therapeutics (PSTV) from $4 to $3, while keeping a "Buy" rating on the shares. The adjustment reflects the company's recent equity dilution and restructuring efforts. Maxim Group's analyst noted that the restructuring transformed a highly dilutive equity financing into a less dilutive financing, which can be considered as 35M prefunded warrants plus $15M in debt [3].

Plus Therapeutics, a biotechnology company focused on developing innovative therapeutic solutions, has been navigating significant financial challenges. The company recently failed to meet the minimum stockholders' equity requirement of $2.5 million, leading to a continued listing on the Nasdaq Stock Market with specific conditions to be met by August 14 and September 8, 2025 [1]. Despite these challenges, analysts have a positive outlook on the company, with a majority rating the stock as a "buy" and a median 12-month price target of $8.00 [2].

The company's recent clinical milestones and strategic momentum have highlighted its potential. Plus Therapeutics has made significant strides in its CNS cancer pipeline, including the initiation of the ReSPECT-LM dose optimization trial for REYOBIQ, a targeted radiotherapeutic for leptomeningeal metastases (LM), and the FDA's clearance of REYOBIQ for pediatric applications in high-grade glioma and ependymoma [2]. The commercial launch of the CNSide® CSF Assay in Texas positions Plus Therapeutics to capture a $6 billion market.

Maxim Group's analysis suggests that Plus Therapeutics' stock is undervalued, with a potential 1,500% upside from its current share price of $0.54. The company's ability to navigate its financial challenges and meet the required conditions will be crucial in determining its long-term success. Investors should consider the broader industry context, with the Zacks Medical - Drugs industry historically outperforming peers [2].

References:
[1] https://www.ainvest.com/news/therapeutics-granted-continued-nasdaq-listing-conditions-2508/
[2] https://www.ainvest.com/news/unlocking-therapeutics-strategic-buy-case-clinical-breakthroughs-undervaluation-2508/
[3] https://www.tipranks.com/news/the-fly/plus-therapeutics-price-target-lowered-to-3-from-4-at-maxim-thefly