BTIG maintains Cartesian stock Buy rating, $42 target

Published 30/05/2025, 18:00
BTIG maintains Cartesian stock Buy rating, $42 target

On Friday, BTIG analyst Julian Harrison reaffirmed a Buy rating on Cartesian Therapeutics (NASDAQ:RNAC) with a steady price target of $42.00. Currently trading at $9.63, with a market capitalization of approximately $250 million, RNAC appears undervalued according to InvestingPro analysis. The stock has seen significant volatility, declining 68% over the past year, though analysts maintain an optimistic consensus with price targets ranging from $16 to $42. Harrison highlighted the enrollment of the first patient in the Phase 3 AURORA trial of Descartes-08 for the treatment of myasthenia gravis (MG), a notable milestone for the company. The recent 12-month data from the Phase 2b study showcased exceptional durability and set a new benchmark for efficacy, bolstering the case for Descartes-08’s use in the immunology and inflammation (I&I) space.

The analyst pointed out that the latest data continues to demonstrate the treatment’s tolerability, with no adverse events related to the therapy reported from four to twelve months. Additionally, there were no occurrences of cytokine release syndrome (CRS) or immune effector cell-associated neurotoxicity syndrome (ICANS), nor an increased risk of hypogammaglobulinemia (hypogam), which differentiates Descartes-08 from DNA-based CAR-T therapies.

Harrison expressed optimism that, should Descartes-08 maintain its efficacy and safety profile in the Phase 3 trial, it could become a significant treatment option in the market. The AURORA trial includes important design elements such as the enrollment of patients with acetylcholine receptor antibody-positive (AChR Ab+) and a longer treatment duration, which may lead to improved outcomes compared to the Phase 2b study.

Looking beyond the treatment of MG, Harrison noted that upcoming data on Descartes-08 for systemic lupus erythematosus (SLE), expected in the second half of 2025, could further validate the therapy’s potential and provide an opportunity for upside in RNAC shares. The positive results could underscore the "pipeline-in-a-product" potential for Descartes-08, suggesting its applicability across multiple indications. While the company reported revenue of $34.17 million in the last twelve months, InvestingPro subscribers can access additional insights, including 12 more ProTips and detailed financial metrics that could help evaluate the company’s growth trajectory.

In other recent news, Cartesian Therapeutics announced a significant leadership change as their Chief Technology Officer, Dr. Metin Kurtoglu, transitions to a consulting role. Effective May 1, 2025, Dr. Kurtoglu will provide his expertise to the company for one year under a new consulting agreement. This move follows a separation agreement that includes severance payments and accelerated vesting of equity awards for Dr. Kurtoglu. Meanwhile, Cantor Fitzgerald has reaffirmed its Overweight rating for Cartesian Therapeutics, maintaining a price target of $22.00. The firm updated its financial model to reflect the company’s latest quarterly performance and guidance. In contrast, H.C. Wainwright adjusted its price target for Cartesian Therapeutics to $40, down from $45, but maintained a Buy rating. The firm highlighted the ongoing Phase 3 AURORA trial for Descartes-08 and other clinical programs as key factors for the company’s potential growth. These developments provide investors with insights into Cartesian’s strategic direction and analyst confidence in its future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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