Analyst upgrades this stock and doubles price target by encouraging Ibsrela story

After the market closes on Thursday, Ardelyx Inc (NASDAQ: ARDX) reported Ibsrela sales in the fourth quarter of fiscal 2022 of $8.7 million and $15.6 million for fiscal 22.
The company earned $35 million in collaboration revenue due to milestone payments and payments under the 2022 amendment to the license agreement between Ardelyx and Kyowa Kirin Co Ltd.
ARDX had cash, cash equivalents and short-term investments of $123.9 million.
The company reported an EPS of $0.06, compared to an EPS loss of $(0.31) a year ago.
wedding bush upgraded the stock to Outperform from Neutral and raised the price target from $3 to $6.
The analyst writes that Ibsrela continues its march higher following the 4Q22 report steadily, and with Xphozah’s regulatory path beginning to become clearer.
A downside risk of around ~$1/share could materialize if Ibsrela’s trading efforts fail to generate greater acceptance and the tenapanor goes off the rails again.
Following the 4Q22 report, the analyst is raising Ibsrela’s FY23 revenue estimates and assigning a higher price point for Xphozah.
The cash trail is still an important consideration; however, Ibsrela’s acceleration of revenues helps offset the expense, as does access to the remaining $22.5 million available under the credit line.
Price Action: ARDX shares rose 34.95% to $3.90 in late check on Friday.

Date	Firm	Action	Of	TO
March 2022	jefferies	updates	Hold	Buy
December 2021	Citigroup	maintains		Buy
December 2021	ladenburg thalmann	updates	Neutral	Buy

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This article Analyst updates this stock and doubles price target by encouraging Ibsrela story originally appeared on Benzinga.com