Diamedica: Lake Street Raises PT to $14 from $11, Maintains Buy Rating

Diamedica: Lake Street Raises PT to $14 from $11, Maintains Buy Rating

Lake Street has significantly increased its price target for DiaMedica Therapeutics (DMAC) shares from $11 to $14, maintaining a Buy rating. This adjustment comes following the release of interim results from Part 1a of the Phase 2 study involving DM199, a treatment aimed at addressing preeclampsia. The firm views these findings as substantially enhancing the potential success of DM199 for this condition [1].

The positive interim results from the Phase 2 trial indicate clinically meaningful reductions in both systolic and diastolic blood pressure, with the highest dose group experiencing acute drops of 35 mmHg and 15 mmHg respectively at 5 minutes. The 24-hour average reductions of 20 mmHg systolic and 10 mmHg diastolic are encouraging and support continued development into Part 1b and beyond [2].

DiaMedica Therapeutics is making substantial progress in its clinical development programs, particularly in the preeclampsia and stroke areas. The company is close to identifying a target dose for its phase 2 preeclampsia trial, with preliminary top-line results expected between June and July. Enrollment in the stroke program is progressing steadily, with participant enrollment reaching between the 20th and 25th percentile mark [1].

The company's strong financial position is evident, with a total combined cash and investments of $37.3 million as of March 31, 2025, providing a runway into Q3 of 2026. However, the company's net cash used in operating activities increased to $7.1 million for the first quarter of 2025, up from $6.7 million in the same period of 2024. Research and development expenses rose significantly to $5.7 million for the three months ended March 31, 2025, compared to $3.7 million for the same period in 2024 [1].

Wall Street analysts forecast an average target price of $9.67 for DiaMedica Therapeutics Inc (DMAC), with a high estimate of $11.00 and a low estimate of $8.00. The average target implies an upside of 145.97% from the current price of $3.93 [1].

References:
[1] https://www.gurufocus.com/news/2987624/diamedica-therapeutics-dmac-price-target-boosted-following-promising-phase-2-results-dmac-stock-news
[2] https://www.tipranks.com/news/the-fly/diamedica-therapeutics-price-target-raised-to-11-from-8-at-craig-hallum-thefly