H.C. Wainwright has downgraded its price target for CorMedix (NASDAQ: CRMD) to $13 per share from the earlier estimate of $18, although the firm continues to recommend the stock as a Buy. Currently priced at $7.44, CorMedix shares remain substantially below both this revised target and their 52-week peak of $17.43. Analysis points to an undervaluation of the stock relative to its Fair Value estimate.
This price target revision comes in response to CorMedix's updated guidance for DefenCath sales covering 2026 and 2027, which has contributed to a recent decrease in stock price. Nevertheless, H.C. Wainwright suggests that the stock has likely reached a valuation floor on a relative basis. Even after experiencing a 36% decline so far this year, CorMedix continues to demonstrate robust financial metrics, including gross profit margins exceeding 94% and a remarkably low price-to-earnings ratio near 3.24.
The firm highlighted a shift in investor sentiment from concerns surrounding commercial execution to recognition of future growth opportunities. The trajectory of CorMedix's stock in the coming 12 to 18 months will probably be influenced by two critical clinical trial data releases. The first is the Rezzayo prophylaxis study results expected during the second quarter of 2026. The second is top-line data from the DefenCath total parenteral nutrition (TPN) study anticipated in early 2027. These clinical trials represent entry into markets currently not accounted for in prevailing investor expectations, with an approximate combined addressable market opportunity valued at $2.75 billion.
With an enterprise valuation close to $595 million and limited pipeline revenues currently factored into consensus forecasts, H.C. Wainwright perceives this environment as conducive to upside potential forthcoming these pivotal clinical event outcomes.
Additional corporate developments include CorMedix’s preliminary unaudited fourth-quarter 2025 net revenues estimated at $127 million and full-year 2025 revenue reaching $310 million. On a pro forma basis, accounting for the Melinta acquisition, 2025 net revenues are projected at roughly $400 million. Fiscal 2026 guidance forecasts revenues between $300 million and $320 million, with DefenCath contributions expected in the $150 million to $170 million range. This represents a potential decline relative to the pro forma 2025 revenue estimate.
Leadership changes have been announced with CEO Joseph Todisco taking on concurrent duties as Chairman of the Board. Myron Kaplan is stepping into a newly created role as Lead Independent Director, and Mike Seckler has been named Executive Vice President and Chief Commercial Officer.
In related analyst actions, Leerink Partners reduced its price target to $15 from $21, and Truist Securities adjusted theirs to $16 from $20, both sustaining positive outlooks on the stock. These revisions follow CorMedix's 2026 revenue guidance falling short of Street expectations.
This article was developed with AI assistance and has undergone editorial review, ensuring accuracy and clarity of the information reported.
H.C. Wainwright has reduced its price target for CorMedix to $13 from $18 while maintaining a Buy rating. The adjustment follows updated 2026-2027 DefenCath sales guidance that influenced the stock's recent pullback. Despite a 36% drop year-to-date, the company's strong gross margins and low P/E ratio underscore its undervaluation. The stock's future performance heavily depends on pivotal clinical trial results expected in 2026 and early 2027, targeting significant markets not fully priced in by investors.
Key Points
- H.C. Wainwright lowers CorMedix price target to $13 but keeps Buy rating, reflecting updated sales guidance and valuation floor.
- CorMedix's stock trades well below price target and 52-week high despite strong gross margins over 94% and low P/E ratio of 3.24, indicating undervaluation.
- Upcoming clinical trial results for Rezzayo prophylaxis (Q2 2026) and DefenCath TPN (early 2027) represent catalysts potentially unlocking a $2.75 billion addressable market not yet priced into stock.
Risks
- Revenue guidance for fiscal year 2026 is below previous pro forma 2025 levels, signaling potential sales decline risk.
- Stock price may remain depressed or decline further if clinical trial outcomes are unfavorable or delayed beyond anticipated timelines.
- Market expectations and analyst price targets have been adjusted downward, reflecting uncertainty about near-term commercial execution and growth, potentially increasing volatility.