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Investing.com - Canaccord Genuity lowered its price target on Passage Bio Inc. (NASDAQ:PASG) to $67.00 from $260.00 on Thursday, while maintaining a Buy rating on the stock. Currently trading at $6.38, the stock sits well below analyst targets ranging from $40 to $260, despite posting a strong 13.7% gain over the past week. InvestingPro analysis reveals additional insights about the company’s valuation metrics and growth potential.
The price target adjustment follows Passage Bio’s second-quarter 2025 report, which Canaccord described as "uneventful" after the company’s earlier-than-expected data update in June due to a new serious adverse event (pulmonary embolism) in Patient 8 following treatment with Dose 2. With a current ratio of 3.05 and more cash than debt on its balance sheet, the company maintains adequate liquidity for its clinical programs, though InvestingPro data indicates it’s quickly burning through cash reserves.
Patient 9, the last patient in Cohort 2 without anticoagulation prophylaxis, received treatment in July with no material safety events reported as of Thursday, according to Canaccord’s research note.
The company submitted an amended protocol in July and plans to begin enrollment of Cohort 3 (5-10 FTD-GRN patients) and Cohort 4 (3-5 FTD-C9orf72 patients) once the protocol is accepted, with both cohorts evaluating Dose 2.
Canaccord indicated it is focused on the next data readout expected in the first half of 2026, which will include at least two Dose 2 patients with six-month data, additional Dose 2 patients with 30-day data, and Dose 1 patients with 12-24 month data.
In other recent news, Passage Bio, Inc. announced a 1-for-20 reverse stock split, which will be effective on July 14, 2025. This decision was made to help the company comply with Nasdaq’s minimum bid price requirement of $1.00 per share. The reverse stock split was approved by stockholders at the company’s annual meeting. Additionally, Passage Bio reported updated interim data from its Phase 1/2 clinical trial for PBFT02, a gene therapy aimed at treating frontotemporal dementia (FTD) with granulin mutations. The data indicated that patients receiving the higher dose of PBFT02 maintained elevated cerebrospinal fluid progranulin levels through 18 months post-treatment. Furthermore, the first patient treated with a lower dose showed significant increases in cerebrospinal fluid progranulin at one month. These developments reflect the company’s ongoing efforts in advancing its clinical trials and addressing stock compliance issues.
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