This analyst just raised his price target on Knight Therapeutics

Research Capital analyst Andre Uddin has raised his price target on Knight Therapeutics (Knight Therapeutics Stock Quote, Chart, News, Analysts, Financials TSX:GUD) to $8.55 from $8.00, while maintaining a “Buy” rating, citing stronger-than-expected fourth-quarter results and improving visibility on growth from new product launches.

In a March 19 report, Uddin said Knight’s recent portfolio-building efforts are beginning to translate into financial performance.

“During 2025, Knight focused on product acquisitions through the Sumitomo and Paladin transactions, as well as preparing for product launches in its LATAM business—we are now seeing these efforts bear fruit,” he said.

Knight reported Q4 revenue of $133.1-million, ahead of Uddin’s $117.8-million estimate and the $118.2-million consensus, marking a 37% increase year-over-year. Full-year 2025 revenue reached $450-million, exceeding management’s guidance of $430-million to $440-million, driven by contributions from acquired Canadian products and in-licensed assets, alongside its existing portfolio.

Adjusted EBITDA came in at $24.4-million, well above the analyst’s $13.5-million estimate and consensus of $13.7-million, while net income totalled $8.9-million, or $0.08 per share. Uddin noted the prior year’s results included non-cash gains, making underlying comparisons more nuanced.

Management is guiding to 2026 revenue of $490-million to $510-million, supported by an expected 10 product launches. Uddin has raised his own forecast to $499-million, up from $460-million previously, reflecting confidence in continued portfolio expansion and commercialization efforts.

The company also continued to strengthen its balance sheet, ending 2025 with $95.3-million in cash and marketable securities and $67.9-million in long-term debt, down from $96.5-million in the prior quarter. Subsequent to year-end, Knight repaid an additional $10-million of debt, repurchased shares, and completed asset rationalization initiatives. Uddin estimates the company now has approximately $100.5-million in cash and $54-million in debt.

He added that Knight retains flexibility for further acquisitions or in-licensing deals, supported by its liquidity position and access to a US$100-million revolving credit facility, expandable to US$200-million. Absent additional deals, Uddin expects the company could fully repay its debt by 2027.

On the product front, Knight continues to expand its portfolio across Canada and Latin America, with multiple regulatory submissions, approvals and launches supporting future growth. The company also returned rights to six non-core Canadian products for $21.5-million, a move Uddin said should not materially impact its growth trajectory, given strength in the remaining portfolio.

Uddin forecasts Knight will generate Adjusted EBITDA of $75.9-million on revenue of $498.9-million in fiscal 2026, improving to $81.1-million on revenue of $517.4-million in 2027.

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