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On Monday, Citizens JMP analysts adjusted the price target for BioAtla Inc. (NASDAQ:BCAB) shares, reducing it significantly from $5.00 to $1.00. Despite the decrease in the price target, the firm maintained a Market Outperform rating for the biotechnology company. According to InvestingPro data, analyst targets for BCAB currently range from $1.00 to $14.00, with the stock trading at $0.37 and showing signs of being undervalued based on Fair Value analysis.
The revision followed BioAtla’s announcement of its fourth quarter 2024 financial results and corporate updates, which included a workforce reduction of over 30%. This strategic move is anticipated to extend the company’s cash runway into the first half of 2026. InvestingPro analysis indicates the company is quickly burning through cash, though it maintains a healthy current ratio of 3.37.
Citizens JMP’s analysts cited the company’s current cash position and upcoming developments as reasons for maintaining the positive rating. With $49 million in cash reserves and the expectation of initial data for BA3182, a novel therapeutic candidate, in mid-2025, the analysts see potential for a rebound in share value. InvestingPro highlights that BioAtla holds more cash than debt on its balance sheet, with liquid assets exceeding short-term obligations. Get access to 10+ additional ProTips and comprehensive analysis with an InvestingPro subscription.
The company is also exploring partnership opportunities for three of its assets. Analysts believe that interesting data from the TCE asset or the introduction of non-dilutive capital through a partnership could positively impact the stock.
BioAtla is working on BA3182 (CAB EpCAMxCD3 TCE), which is part of a new class of conditionally active biologics. The initial data for this treatment is highly anticipated and could be a significant milestone for the company amidst its current restructuring efforts.
In other recent news, BioAtla Inc. reported its financial results for the fourth quarter of 2024, revealing a net loss of $14.9 million, which is a significant improvement from the $26.9 million loss reported in the same quarter the previous year. This reduction in net loss is attributed to strategic cost-cutting measures, including a more than 30% workforce reduction and a decrease in R&D expenses from $22.7 million to $11.6 million. BioAtla also announced advancements in its clinical programs, particularly in its CAB platform technologies, which have been a focal point for the company.
BTIG analyst Justin Zelin revised the price target for BioAtla, lowering it to $10.00 from $13.00, but retained a Buy rating, indicating continued confidence in the company’s potential despite the adjustment. The company is actively seeking partnerships for its ROR2 and CTLA-4 programs, with discussions already initiated. Updates were provided on the EpCAM program, with new data anticipated by mid-2025, and on the AXL program, which showed a 25% objective response rate in certain lung cancer patients. Additionally, BioAtla highlighted the efficacy of its ROR2 ADC in HPV-positive patients, reporting a 27% confirmed objective response rate.
BioAtla’s cash and cash equivalents stood at $49 million as of the end of 2024, and the company expects further reductions in R&D expenses in the first half of 2025. These financial and strategic developments reflect BioAtla’s ongoing efforts to optimize its operations and advance its clinical pipeline.
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