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On Wednesday, JMP Securities analyst Jonathan Wolleben adjusted the price target for Aura Biosciences (NASDAQ:AURA) shares, reducing it to $19.00 from the previous $21.00. The new target represents significant upside potential from the current trading price of $7.08, with the stock down about 21% over the past six months. Despite the revision, Wolleben maintained a Market Outperform rating for the biopharmaceutical company, which currently has a market capitalization of $354 million. InvestingPro analysis suggests the stock is fairly valued at current levels.
Wolleben’s commentary highlighted the positive feedback from Key Opinion Leaders (KOLs) regarding the Phase 1 data of Aura’s drug candidate bel-sar. The KOLs expressed enthusiasm about the early responses observed after a short dosing period, as well as the drug’s clean safety profile and ease of administration. These attributes were noted as potential key differentiators in treating patients with low-grade non-muscle invasive bladder cancer (NMIBC). According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 10.77 and more cash than debt on its balance sheet, though it is currently burning through cash rapidly as it advances its clinical programs.
Aura’s ongoing clinical trials were also discussed. The company is evaluating bel-sar as both an immune ablative treatment for intermediate-risk patients and as a neoadjuvant to transurethral resection of bladder tumor (TURBT) for patients with intermediate- and high-risk NMIBC in its Phase 1b/2 trials.
In the field of ocular oncology, Aura has enrolled over 175 patients in the Phase 3 CoMpass trial for uveal melanoma, which is focusing on patients with documented tumor growth. Although the screen failure rate has increased, potentially extending the time to data, Wolleben commented positively on this strategy, suggesting it could decrease clinical risk.
Wolleben’s revised $19 price target is risk-adjusted and derived from a discounted cash flow (DCF) model. It is primarily supported by bel-sar’s opportunity in treating uveal melanoma. Additional indications such as bladder cancer, choroidal metastasis, and ocular surface cancer are considered as upside potentials to the valuation. JMP Securities anticipates updates on these follow-up indications throughout the year. The broader analyst consensus remains bullish, with targets ranging from $19 to $25 per share. Investors can access detailed financial health metrics and additional insights through InvestingPro, which rates the company’s overall financial health as "Fair" with a score of 2.19 out of 5.
In other recent news, Aura Biosciences has announced promising results from its Phase 1 trial evaluating bel-sar for non-muscle invasive bladder cancer (NMIBC). The trial demonstrated positive safety and feasibility outcomes, with notable clinical activity observed in patients receiving the treatment. Specifically, four out of five patients with intermediate-risk NMIBC achieved a complete response, while high-risk patients also showed promising results. The drug was well-tolerated, with minimal adverse effects reported. Additionally, Aura Biosciences will present further data on bel-sar at the 40th Annual European Association of Urology Congress, highlighting its potential in bladder cancer treatment.
In related developments, H.C. Wainwright raised its price target for Aura Biosciences to $25, maintaining a Buy rating. This decision follows progress in the development of bel-sar for early-stage choroidal melanoma, which has received Orphan Drug and FDA Fast Track Designations. The ongoing Phase 3 CoMpass trial is evaluating the treatment’s efficacy and safety, with significant patient enrollment progress reported. H.C. Wainwright forecasts strong sales projections for bel-sar, anticipating a commercial launch for primary choroidal melanoma in 2027.
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