B.Riley sets Foghorn stock Buy rating, $10 target

The recent decline in Foghorn Therapeutics’ stock was attributed to the discontinuation of another of its products, FHD-286. However, the analysts emphasized that this event does not impact their investment thesis and, in their view, presents a favorable buying opportunity for the company’s shares. With analyst targets ranging from $4 to $18, and a consensus Buy rating of 1.67 (where 1 is Strong Buy), detailed valuation metrics and additional insights are available through InvestingPro’s comprehensive research reports. With analyst targets ranging from $4 to $18, and a consensus Buy rating of 1.67 (where 1 is Strong Buy), detailed valuation metrics and additional insights are available through InvestingPro’s comprehensive research reports.

The analysts identified FHTX’s lead asset, FHD-909, a selective SMARCA2 inhibitor currently undergoing a Phase I dose-escalating study, as the main driver of the company’s value. The preclinical data for FHD-909 has shown promise, but the analysts noted that the market might be undervaluing the program due to lackluster early efficacy data from a similar compound developed by another company.

B.Riley’s analysts argued that FHD-909’s consistent in vivo inhibition of SMARCA2 should not be ignored, as it suggests the drug could have greater clinical potential than its predecessor. They projected that the stock could see over 100% upside within the next 12 to 18 months if upcoming clinical updates for FHD-909 align with their expectations.

The recent decline in Foghorn Therapeutics’ stock was attributed to the discontinuation of another of its products, FHD-286. However, the analysts emphasized that this event does not impact their investment thesis and, in their view, presents a favorable buying opportunity for the company’s shares.

In other recent news, Foghorn Therapeutics has been dealing with significant changes. The pharmaceutical company received a non-compliance notice from Nasdaq due to a shortfall in the number of independent audit committee members. This issue arose following the resignation of Dr. Adam M. Koppel from the Board of Directors. However, the company plans to rectify this within the grace period provided by Nasdaq.

Foghorn has also halted the development of its drug candidate FHD-286 for Acute Myeloid Leukemia due to unsatisfactory response rates in the Phase 1 trial. Instead, the company is now focusing on its proprietary pipeline and collaboration programs with Lilly, including the clinical-stage selective SMARCA2 inhibitor FHD-909.

Analysts from Jefferies, H.C. Wainwright, and Morgan Stanley (NYSE:MS) have updated their perspectives on Foghorn Therapeutics. Jefferies and H.C. Wainwright have reduced the price targets for Foghorn Therapeutics shares, while maintaining a Buy rating, and Morgan Stanley has raised its price target, retaining an Equalweight rating.

In terms of personnel changes, the company has appointed Dr. Anna Rivkin as its new Chief Business Officer. These are recent developments in the trajectory of Foghorn Therapeutics.

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