Wells Fargo Raises Liquidia PT to $31 from $25, Maintains Overweight Rating

Wells Fargo Raises Liquidia PT to $31 from $25, Maintains Overweight Rating

Wells Fargo & Company has updated its price target for Liquidia Corp (LQDA) to $31 from $25, while maintaining an Overweight rating. The move comes after the company reported robust second-quarter earnings, highlighting strong sales of its YUTREPIA product and a solid financial position.

Liquidia Corp reported $8.8 million in revenue for the second quarter of 2025, significantly surpassing the forecast of $3.92 million. The company achieved a 75% script-to-start conversion rate, indicating strong market acceptance and effective patient support services. Over 900 unique patient prescriptions were reported, leading to more than 550 patient starts on YUTREPIA within the first 11 weeks [1].

The company also reported a median six-minute walk distance improvement of 31.5 meters at week 16, demonstrating the product's efficacy. Liquidia Corp closed the quarter with over $173 million in cash and cash equivalents, providing a solid financial position to support future growth [2].

Despite the strong launch, Liquidia Corp faces customary new-to-market blocks and non-formulary positioning challenges that could impact growth. The company has signed contracts with major commercial payers, which is expected to improve market access and remove new-to-market blocks, potentially accelerating growth in the coming quarters [1].

Wells Fargo analysts highlighted the company's ability to maintain a healthy current ratio of 2.93, indicating strong liquidity to support operations. The stock surged 16.04% in pre-market trading to $24.60, reflecting investor confidence in the company's growth prospects [2].

Looking ahead, Liquidia Corp anticipates continued growth in its prescriber base and improvements in the payer landscape. The company plans to expand its manufacturing capacity by 2026, which could further drive revenue. Analysts tracked by InvestingPro maintain a strong Buy consensus with a rating of 1.67, projecting significant revenue growth of 202% for FY2025 [2].

References:
[1] https://www.gurufocus.com/news/3057716/liquidia-corp-lqda-q2-2025-earnings-call-highlights-strong-yutrepia-launch-and-financial-position
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-liquidia-q2-2025-sees-revenue-surge-stock-jumps-93CH-4185201