Rockwell Medical Technologies (RMTI) PT Lowered to $7 at H.C. Wainwright

H.C. Wainwright analyst Raghuram Selvaraju lowered the price target on Rockwell Medical Technologies (NASDAQ: RMTI) to $7.00 (from $9.00) while maintaining a Buy rating.

The analyst commented: "In its 3Q24 financial results press release, Rockwell Medical indicated that its net product sales included a special large order of premium-priced products purchased by the company's largest customer. The company also received a notice of term extension for the amended and restated products purchase agreement dated September 21, 2023, which amended and restated the original purchase agreement, dated July 1, 2019, with this customer. The extension extends the term of the amended agreement through December 31, 2025, during which extension term product pricing will increase. However, the customer has indicated to Rockwell that it expects volumes to decline during the extension term as the customer works to diversify its supplier base. Although Rockwell Medical reported total 3Q24 top-line revenue of $28.3M, beating our estimate of $26M, the projected loss of product volumes from its key customer as delineated above has impacted our forward estimates. We believe that Rockwell ought to be able to weather the setback stemming from reduced volume demand by its largest customer and return to top-line growth within the next couple of years. However, in the wake of these developments, we are lowering our 12-month price target to $7 from the prior $9 per share, while reiterating our Buy rating."

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