H.C. Wainwright assumes coverage on Xeris Pharmaceuticals stock with Buy rating

H.C. Wainwright has initiated coverage on Xeris Pharmaceuticals (XERS) with a Buy rating and a $10.00 price target, identifying Recorlev as a key revenue driver with a $1 billion target by 2035 and suggesting potential upside to current consensus estimates. This positive outlook follows XERS's significant stock outperformance, up 108% year-to-date in 2025, and a recent Q2 2025 earnings beat on both EPS and revenue, underscoring strong financial momentum and investor confidence despite technical indicators suggesting the stock is currently overbought.

Analysis

H.C. Wainwright has initiated coverage on Xeris Pharmaceuticals (XERS) with a Buy rating and a $10.00 price target, signaling considerable potential upside from its current trading price of $7.20. This bullish stance is underpinned by the company's robust operational performance, evidenced by a Q2 2025 earnings report that surpassed expectations with an EPS of -$0.01 against a forecasted -$0.03 and revenue of $71.5 million, an 11.85% beat. The market has responded favorably, with the stock gaining 108% year-to-date and 220% over the past year, significantly outperforming the XBI index, which has declined 6.2% in the same period. The primary driver for this optimism is the growth trajectory of its drug Recorlev, for which management targets $1 billion in revenue by 2035. Wainwright's research suggests current consensus estimates lag this potential, creating an opportunity for upside if Xeris maintains its execution on new patient starts. While the long-term outlook is further bolstered by the potential of XP-8121, investors should remain aware that technical indicators currently signal the stock is in overbought territory following its substantial price appreciation.

Key Decisions for Investors

• Investors may consider the new 'Buy' rating and recent earnings beat as justification to initiate or add to a position, especially as the analyst's price target suggests significant upside remains.
• Caution is warranted due to the stock's 220% one-year gain and 'overbought' technical signals, which could increase the likelihood of a near-term pullback or volatility; therefore, staggering entry points may be a prudent strategy.
• Monitor future quarterly reports for specific data on Recorlev's new patient starts, as continued strength in this metric is critical to validating the long-term growth thesis and closing the gap between current consensus estimates and management's ambitious revenue targets.