Cero Therapeutics stock rating upgraded to Buy on solid tumor approach

Published 23/06/2025, 12:50
Cero Therapeutics stock rating upgraded to Buy on solid tumor approach

Investing.com - D. Boral (OTC:BOALY) Capital upgraded Cero Therapeutics (NASDAQ:CERO) from Hold to Buy on Monday, setting a price target of $30.00 based on the company’s innovative approach to T cell engineering for solid tumors. The stock has shown remarkable momentum, gaining over 55% in the past week, though InvestingPro data shows it remains well below its 52-week high of $895.40.

The upgrade follows discussions with Cero’s CEO and reflects confidence in the company’s strategic direction after its recent reverse stock split. D. Boral Capital highlighted several potential catalysts that could drive stock appreciation, including the company’s proprietary platform designed to give T cells both innate and adaptive immune functionalities. According to InvestingPro analysis, the company currently maintains a market capitalization of just $4.12 million, with analyst price targets ranging from $60 to $220.

Cero’s technology addresses limitations of traditional CAR-T therapies in solid tumors through its Chimeric Engulfment Receptor (CER) technology, which enables engineered T cells to detect signals on tumor cells and initiate engulfment, mimicking macrophage function. Preclinical data suggests enhanced tumor infiltration, antigen-agnostic killing, and improved persistence compared to conventional approaches.

Key upcoming catalysts include the initiation of patient dosing in a Phase 1 acute myeloid leukemia trial and the anticipated start of a solid tumor study in the second half of 2025 following recent IND clearance. The company recently completed a SPAC merger, securing access to public capital markets.

D. Boral Capital’s valuation model applies a 15% probability of success factor for clinical programs in AML, ovarian cancer, and non-small cell lung cancer, along with a 30% discount rate based on small company risk factors associated with Cero Therapeutics. InvestingPro analysis indicates the stock is currently undervalued, with additional metrics and 13 more ProTips available to subscribers, including detailed insights into the company’s financial health and growth prospects.

In other recent news, CERo Therapeutics Holdings Inc. announced that the U.S. Food and Drug Administration has granted Orphan Drug Designation to its lead candidate, CER-1236, for treating acute myeloid leukemia (AML). This designation offers CERo several incentives, including assistance with clinical trial design and potential seven-year marketing exclusivity if the drug is approved. CER-1236 is currently undergoing Phase 1 clinical trials to assess its safety and efficacy in patients with various forms of AML. Additionally, CERo has implemented a one-for-twenty reverse stock split, reducing its outstanding shares significantly. The company also issued additional Series D Preferred Stock, raising $750,000, with the possibility of securing more funding. Furthermore, CERo has expanded its intellectual property portfolio with the granting of two U.S. patents and the allowance of a European patent application related to CER-1236. These patents are expected to strengthen CERo’s position in engineered T cell therapeutics. CEO Chris Ehrlich expressed confidence in the company’s growth, citing the importance of these patents in differentiating CERo’s technology from other cell therapies.

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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