No doubt about it — it’s a great day to be invested in Ardelyx (NASDAQ:ARDX) stock. Not only did the company just release expectation-beating fourth-quarter results, but an analyst group recently gave shares an upgrade and ambitious price target.
Ardelyx is a biopharmaceutical company with an approved product in the U.S. and Canada called IBSRELA, which targets irritable bowel syndrome (IBS). The company is also developing XPHOZAH, which is designed for the “control of serum phosphorus in patients with chronic kidney disease (CKD) on dialysis.”
Yesterday, after the market close, Ardelyx disclosed its Q4 and full-year 2022 results with largely positive data. For example, the company posted $44.18 million in Q4 revenue, a huge improvement over Q4 2021 revenue of $1.03 million. This result also beat the analyst consensus estimate by more than 50%.
Turning to the bottom line, Ardelyx also reported EPS of 6 cents. Wall Street had only expected 1 cent per share. Notably, Ardelyx swung to profitability as well; the company posted a loss of 14 cents per share in the prior quarter.
What’s Happening With ARDX Stock?
ARDX stock immediately shot higher this morning, now rallying more than 25% and heading toward the $4 level. Clearly, today’s financial traders are pleased with the quarterly results.
That’s not the only piece of positive news for Ardelyx, however. Wedbush analyst Laura Chico also upgraded shares from “neutral” to “outperform.”
Wedbush assigned a $6 price target on ARDX stock, implying significant upside from the current share price. Chico noted that IBSRELA “continues to steadily march upward following the 4Q22 report” and feels that the regulatory path for XPHOZAH is “starting to become clear.” The analyst continued:
“Commercial success is critical to our thesis, but with the stock trading at <$3/sh, we see a favorable risk/reward setup.”
Overall, the market seems to concur with Wedbush’s assessment of Ardelyx and its medical products. Investors are definitely in a positive mood today, quickly bidding up ARDX stock.
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On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.