89bio stock price target lowered to $11 by RBC on model updates

Published 08/08/2025, 14:56
89bio stock price target lowered to $11 by RBC on model updates

Investing.com - RBC Capital lowered its price target on 89bio Inc . (NASDAQ:ETNB) to $11.00 from $12.00 on Friday, while maintaining a Sector Perform rating on the stock. According to InvestingPro data, the company maintains a strong financial position with more cash than debt and a healthy current ratio of 18x, though it’s currently experiencing rapid cash burn.

The firm cited model updates as the reason for the price target reduction, while noting that 89bio’s Phase III MASH studies continue to progress toward top-line data expected in the first half of 2027 for F2-3 MASH and in 2028 for F4 MASH.

RBC Capital indicated that recent events surrounding the FGF21 drug class have produced mixed results for 89bio and its pegoza treatment, though the firm still sees a potentially important role for FGF21 therapies like pegoza in later-stage patients.

The research firm believes pegoza could generate approximately $2 billion in peak opportunity that may not be fully reflected in 89bio’s current valuation, particularly in cases where more rapid antifibrotic effects are desired.

Despite this potential, RBC Capital maintains a balanced view on near-term reward/risk, noting that with data still far off, the stock could be vulnerable to competitive developments and potential FGF21 safety issues, particularly related to bone health.

In other recent news, 89bio, Inc. held its 2025 Annual Meeting of Stockholders, where significant decisions were made regarding the company’s leadership. During the meeting, shareholders elected Martin Babler, Derek DiRocco, Ph.D., and Lota Zoth, C.P.A., as Class III directors. All proposed agenda items received approval, reflecting strong support from the shareholders. The meeting was held on May 28, 2025, with 145,984,182 shares of common stock entitled to vote. These developments highlight the company’s ongoing governance activities. The company is incorporated in Delaware and listed on The Nasdaq Global Market. These updates provide insight into 89bio’s current corporate governance and shareholder engagement.

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