Should I Buy VNDA? VNDA 2026 Analysis

Should You Buy Vanda Pharmaceuticals Inc (VNDA) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

7.870

1 Day change

2.34%

52 Week Range

9.600

Analysis Updated At

2026/01/26

Vanda Pharmaceuticals Inc. (VNDA) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has some positive catalysts, such as recent FDA approvals and an increase in revenue, the stock faces significant legal challenges, a recent FDA rejection, and a lack of strong trading signals. The technical indicators are mixed, and the options data suggests a lack of significant bullish sentiment. Given the investor's preference for long-term stability, it is advisable to hold off on investing in VNDA until there is more clarity on its legal and regulatory challenges.

Technical Analysis

The technical indicators are mixed. The MACD is below zero and negatively contracting, suggesting bearish momentum. The RSI is neutral at 61.937, indicating no clear overbought or oversold condition. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), but the stock is trading near its resistance level (R1: 8.121). Key support levels are at 7.239, and resistance levels are at 8.394.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

The low put-call ratios indicate a lack of bearish sentiment, but the overall trading volume and open interest do not suggest significant bullish activity either.

Technical Summary

Sell

Buy

Positive Catalysts

Recent FDA approval of Nereus for motion sickness, which could unlock $100M-$300M in revenue.
Analysts have raised price targets, with some seeing the stock as undervalued.
Revenue increased 18.06% YoY in Q3 2025.

Neutral/Negative Catalysts

FDA rejection of HETLIOZ for jet lag disorder, leading to a 14.05% stock drop.
Legal challenges with potential securities fraud investigation by Pomerantz LLP.
Negative net income and EPS despite YoY improvement.
Stock trend analysis shows a 70% chance of a significant decline (-21.54%) in the next month.

Financial Performance

In Q3 2025, revenue increased by 18.06% YoY to $56.26M, and net income improved significantly but remained negative at -$22.59M. EPS also improved but stayed negative at -0.38. Gross margin increased slightly to 91.63%. While the financials show improvement, the company is still operating at a loss.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts are generally positive on VNDA, with multiple Buy ratings and price targets ranging from $7.50 to $22. However, the FDA rejection of HETLIOZ and ongoing legal issues may limit near-term upside.

4 Analyst Rating

Wall Street analysts forecast VNDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VNDA is 13.63 USD with a low forecast of 7.5 USD and a high forecast of 22 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

3 Buy

1 Hold

0 Sell

Strong Buy

Current: 7.690

Low

7.5

Averages

13.63

High

Current: 7.690

Low

7.5

Averages

13.63

High

H.C. Wainwright

maintain

$22

AI Analysis

2026-01-08

Reason

H.C. Wainwright

Price Target

$22

AI Analysis

2026-01-08

maintain

Reason

H.C. Wainwright notes that Vanda Pharmaceuticals announced that it has received a decision letter from the FDA's Center for Drug Evaluation and Research concluding that the supplemental New Drug Application for HETLIOZ - tasimelteon - for the treatment of jet lag disorder cannot be approved in its current form. In the firm's view, the rejection of tasimelteon constitutes only a minor setback and may not mark the end of dialogue over the compound in this indication. Furthermore, Wainwright draws investors' attention to the fact that its valuation assessment did not include any contribution from sales of tasimelteon in treatment of jet lag. Accordingly, the firm reiterates a Buy rating and a price target of $22 on the shares.

H.C. Wainwright

Buy

maintain

$20 -> $22

2026-01-05

Reason

H.C. Wainwright

Price Target

$20 -> $22

2026-01-05

maintain

Buy

Reason

H.C. Wainwright raised the firm's price target on Vanda Pharmaceuticals to $22 from $20 and keeps a Buy rating on the shares. The firm cites the addition of tradipitant sales into the model following the approval for the treatment of motion sickness for the target boost.

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VNDA Should I Buy

VNDA Should I Buy

Should You Buy Vanda Pharmaceuticals Inc (VNDA) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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