Is Now the Time to Invest in Merus N.V. (NASDAQ:MRUS)?

Is Now the Time to Invest in Merus N.V. (NASDAQ:MRUS)?

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The Merus N.V. (MRUS) shares are trading at lower $15.05 and the avg recommendation for the stock is Strong Buy. The current analyst price target stands at $19.57.

To add more color to this target, the company’s high over the last year is $20.95 and the low is $10.19. Over the last 52 weeks, MRUS is down -28.16% while the S&P 500 is down -2.38%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, MRUS reported a profit of $25.87 million. Merus N.V. also saw revenues increase to $6.3 million. In addition, MRUS has free cash flow of -$25.41 million as of 03-2020 The company’s EBITDA came in at -$19.24 million which compares well with its peers.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. MRUS has a short ratio of 1.76 and outstanding shares of 28.95M.

Company Outlook

MRUS has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.11 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -2.55. Merus N.V. MRUS also noted assets of $237.96 million at the end of the last quarter. Investors should also keep an eye on sector updates as MRUS has historically followed its peers on positive news.

All told, Merus N.V. MRUS has strung together solid data and demonstrated underlying fundamentals. At its current valuation, MRUS represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Merus N.V. MRUS is now commanding a market cap of 458.87M and a float of 25.45M. MRUS is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of MRUS stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in MRUS, either long or short, and we have not been compensated for this article.