The Globe and Mail reports in its Thursday edition that National Bank Financial analyst Endri Leno continues to rate Theratechnologies "sector perform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Leno cut his share target by $1.50 to $5.50. Analysts on average target the shares at $6.83. While Theratechnologies' third quarter results were mixed with a revenue miss and earnings before interest, taxes, depreciation and amortization beat, Mr. Leno thinks the report signals it has "started to find a footing." Mr. Leno says in a note: "This is particularly the case via the return to positive Adj. EBITDA after some three-plus years. The latter is expected to continue as 1) the lower Q3/f23 R&D expenses are expected to remain as such; and 2) some covenants on the Marathon loan are moving to Adj. EBITDA-based targets (from revenue-based prior). While fQ3 revs missed our estimate by 11 per cent, the revised f2023 revenue guidance is just 1 per cent lower at midpoint ($83.5-million (U.S.) vs. $84.5-million (U.S.) prior), implying a stronger fQ4 with revenues of $25.1-million (U.S.) (up 18 per cent year-over-year, up 21 per cent quarter-over-quarter, and up 6 per cent vs. our estimate)."
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