On Thursday, H.C. Wainwright adjusted its outlook on Calidi Biotherapeutics Inc (NYSE:CLDI), reducing the price target significantly to $2 from the previous $11, while still maintaining a Buy rating on the stock. This adjustment comes after the company reported its financial results for the year 2023, which indicated a net loss that exceeded analyst expectations.
The company disclosed a net loss of $1.73 per share for 2023, which was more substantial than the projected loss of $1.56 per share. The discrepancy was largely attributed to higher operational costs and a reduced share count than initially forecasted.
Specifically, research and development (R&D) expenses reached $13.0 million, and selling, general, and administrative (SG&A) expenses totaled $16.0 million, both surpassing the analyst's earlier estimates of $12.4 million and $14.2 million, respectively.
Looking ahead, H.C. Wainwright has revised its projection for Calidi Biotherapeutics' full-year net loss in 2024 to $0.88 per share, an increase from the previously estimated loss of $0.73 per share. The company concluded the 2023 fiscal year with a balance of $1.95 million in cash, cash equivalents, and marketable securities. This figure underscores the pressing need for the company to secure additional financing to sustain its operations.
In light of the need for capital, the analyst anticipates that Calidi Biotherapeutics will engage in a series of equity financing rounds each quarter throughout the remainder of the year.
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