Scotiabank Initiates Coverage of Ardelyx with Strong Price Upside Potential

Fintel reports that on March 7, 2025, Scotiabank initiated coverage of Ardelyx (NasdaqGM:ARDX) with a Sector Outperform recommendation.

Analyst Price Forecast Indicates Significant Upside

As of March 4, 2025, the average one-year price target for Ardelyx stands at $10.26 per share. Predictions range from a low of $5.56 to a high of $13.65. This average price target reflects a potential increase of 93.66% from its latest reported closing price of $5.30 per share.

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Revenue and Earnings Outlook

The projected annual revenue for Ardelyx is estimated at $247 million, marking a decrease of 25.93%. Additionally, the projected annual non-GAAP EPS is -0.07.

Fund Sentiment Overview

Currently, 381 funds or institutions report positions in Ardelyx, reflecting a slight decrease of one owner or 0.26% in the last quarter. The average portfolio weight of all funds allocated to ARDX is 0.13%, which is an increase of 4.70%. Total shares held by institutions have also risen by 5.08% over the past three months, now totaling 189,340K shares. The put/call ratio for ARDX is recorded at 0.60, indicating a bullish sentiment.

Recent Activity Among Shareholders

Janus Henderson Group holds 24,388K shares, making up 10.23% of the company. Their previous filing indicated 21,530K shares, equating to an increase of 11.72%. However, the firm reduced its overall portfolio percentage in ARDX by 69.31% last quarter.

Macquarie Group holds 10,347K shares, representing 4.34% ownership. Their last reported ownership was 8,948K shares, showing an increase of 13.51%. Nevertheless, their allocation in ARDX decreased by 20.76% compared to the prior quarter.

DCCAX – Delaware Small Cap Core Fund has 7,316K shares, reflecting 3.07% ownership. Previously, they reported ownership of 5,636K shares, marking a substantial increase of 22.96%. The firm expanded its portfolio allocation by 10.99% over the past three months.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 7,046K shares for 2.96% ownership. Their prior filing indicated 7,035K shares, reflecting a modest increase of 0.16%. However, their allocation in ARDX was decreased by 27.37% last quarter.

IWM – iShares Russell 2000 ETF oversees 6,262K shares, translating to 2.63% ownership. In its last report, it held 6,040K shares, showing a 3.54% increase. The fund, however, reduced its allocation in ARDX by 26.50% in the last quarter.

Background on Ardelyx

(This description is provided by the company.)

Ardelyx focuses on discovering, developing, and commercializing innovative medicines targeted at enhancing the lives of patients with kidney and cardiorenal diseases. The company is advancing tenapanor, designed to control serum phosphorus in adults with chronic kidney disease (CKD) on dialysis. An NDA is currently under FDA review, with a PDUFA date of April 29, 2021. Ardelyx is also working on RDX013, a potassium secretagogue for treating elevated serum potassium levels, a common issue in certain patients with kidney and heart diseases. Furthermore, the company has programs in metabolic acidosis, a serious electrolyte disorder in CKD patients. The FDA approved Ardelyx’s IBSRELA® (tenapanor) on September 12, 2019, and the company has established agreements with Kyowa Kirin in Japan, Fosun Pharma in China, and Knight Therapeutics in Canada for the development and commercialization of tenapanor in their respective markets.

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This story originally appeared on Fintel.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.