Catalyst Pharmaceuticals (CPRX): Valuation After Strong Earnings Growth and Raised 2025 Outlook

Catalyst Pharmaceuticals (CPRX) surprised investors by delivering stronger revenue and net income growth for the recent quarter. The company also raised its revenue guidance for 2025, signaling confidence in its ongoing business momentum.

See our latest analysis for Catalyst Pharmaceuticals.

On top of the upbeat earnings, Catalyst Pharmaceuticals’ share price steadily climbed, up nearly 13% over the past month and 15% in the last 90 days. The one-year total shareholder return stands at a healthy 12.5%, with long-term investors seeing impressive gains of nearly 592% over five years. The momentum appears to be building thanks to the company’s operational progress and rising confidence in its outlook.

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With shares rallying and fundamentals trending up, investors may wonder if Catalyst Pharmaceuticals is still trading below its true value or if the recent surge means that future growth has already been factored in.

Most Popular Narrative: 32% Undervalued

The narrative sees Catalyst Pharmaceuticals’ fair value at $34.29, a substantial premium to the recent close. This sets up a bold valuation outlook given the current momentum and street enthusiasm.

Significant upside exists from expanding FIRDAPSE's addressable patient pool by improving rare cancer-associated LEMS diagnosis, driven by updated NCCN guidelines, wider access to frictionless VGCC antibody testing, and targeted oncology education. With 90% of this segment still undiagnosed, this lays a foundation for sustained, above-market revenue growth in 2026 and beyond as more patients are identified and treated.

Read the complete narrative.

Want to know the bold catalyst behind this mismatch? The high valuation hinges on transforming diagnosis rates and an ambitious plan to boost market reach. Intrigued about which financial assumptions make this price target a reality? Read on to uncover how vision and numbers intersect in this narrative.

Result: Fair Value of $34.29 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, key risks remain, including Catalyst's heavy reliance on FIRDAPSE as well as ongoing legal uncertainties that could threaten both revenue concentration and future growth.

Find out about the key risks to this Catalyst Pharmaceuticals narrative.

Build Your Own Catalyst Pharmaceuticals Narrative

Not seeing eye to eye with the latest perspective, or want to dig deeper? You can analyze the numbers and craft your unique take in just a few minutes. Do it your way

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Catalyst Pharmaceuticals.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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