Knight Therapeutics gets new $11.00 target at Research Capital

Research Capital analyst Andre Uddin says Knight Therapeutics’ (Knight Therapeutics Stock Quote, Chart, News, Analysts, Financials TSX:GUD) growing product pipeline should support solid results over the next several years.

In an Aug. 6 update, Uddin maintained his “Buy” rating on Knight and raised his target to $11.00 from $9.80.

“We believe the company’s pipeline of new products should help the company to deliver solid results in the coming years,” Uddin said.

Knight reported Q2 revenue of $144.2-million, up 34% year-over-year and ahead of Uddin’s $120.8-million estimate and consensus at $125.0-million.

Adjusted EBITDA was $24.6-million, above Uddin’s $15.8-million estimate and consensus of $16.1-million. Management raised its 2026 revenue guidance to $540-million to $560-million from $510-million to $525-million and continues to guide Adjusted EBITDA at 15% of revenue.

Uddin said he expects a modest decline in Latin American revenue in the second half of 2026, reflecting the absence of AmBisome sales in Brazil and Lenvima price controls in Colombia.

Knight reported a net loss of $3.4-million, or three cents per share, but Uddin said that included a $9.7-million non-cash loss tied to a fund investment. Excluding that item, net income would have been $6.3-million, or six cents per share.

Knight ended Q2 with $109.6-million of cash and marketable securities and $23.1-million of long-term debt. During the quarter, it repaid $30-million of the remaining credit facility used to finance the Paladin acquisition.

The analyst said Knight’s 3% long-term debt-to-equity ratio is its lowest since at least 2019, leaving the company with a strong balance sheet and room for further product licensing or acquisitions.

In Q2, Knight recorded $12.5-million of AmBisome revenue from deliveries to Brazil’s Ministry of Health. It also received Brazilian approval for Tavalisse and launched four products across Latin America.

In Canada, Knight withdrew its Health Canada submission for Qelbree after manufacturing changes by its partner, with management expecting to resubmit later. After quarter-end, the company received a Notice of Non-Compliance for Crexont and is working with its partner to respond to Health Canada.

Uddin expects Knight to generate Adjusted EBITDA of $84.9-million on revenue of $553.7-million in fiscal 2026, improving to Adjusted EBITDA of $85.6-million on revenue of $560.0-million in fiscal 2027.

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