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Investing.com - Chardan Capital Markets has lowered its price target on SAB Biotherapeutics (NASDAQ:SABS) stock to $12.00 from $20.00 while maintaining a Buy rating following the company’s second-quarter financial results. According to InvestingPro data, the stock currently trades significantly below its 52-week high of $6.60, with analysts maintaining targets between $7.00 and $20.00.
SAB Biotherapeutics ended the quarter with $5.7 million in cash and equivalents, down from $20.8 million at the end of 2024, reflecting InvestingPro’s observation of rapid cash burn. While the company holds more cash than debt on its balance sheet, its current ratio stands at 1.69. In July, the company secured a $175 million oversubscribed private placement that included milestone-based warrants potentially worth an additional $284 million if fully exercised.
The private placement extends SAB’s cash runway into mid-2028, providing funding for the potentially pivotal phase IIb SAFEGUARD trial of SAB-142 in type I diabetes (T1D). The company recently achieved regulatory alignment with the FDA on the design and advancement of this trial following a Type B meeting.
The SAFEGUARD trial is expected to begin in the third quarter of 2025. Chardan Capital cited the degree of shareholder dilution relative to what was previously forecasted in their model as the primary reason for the lower price target.
Despite the price target reduction, Chardan maintained its Buy rating on SAB Biotherapeutics stock.
In other recent news, SAB Biotherapeutics announced a significant financing deal, securing $175 million through a private placement. This financing includes participation from strategic investor Sanofi (NASDAQ:SNY) and a variety of institutional investors, with the potential for an additional $284 million through warrants. Following this development, Oppenheimer raised its price target for SAB Biotherapeutics to $14 from $12, maintaining an Outperform rating. This adjustment reflects confidence in the company’s financial strategy and future growth potential. Meanwhile, H.C. Wainwright adjusted its price target for SAB Biotherapeutics from $10 to $9, while still maintaining a Buy rating. These recent developments highlight the varied analyst perspectives on the company’s outlook. The financing deal and analyst ratings are key points of interest for investors monitoring SAB Biotherapeutics.
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