Citi reiterates Buy rating on Caribou Biosciences stock ahead of key data

Published 18/07/2025, 15:50
Citi reiterates Buy rating on Caribou Biosciences stock ahead of key data

Investing.com - Citi has reiterated its Buy rating and $6.00 price target on Caribou Biosciences Inc. (NASDAQ:CRBU), currently trading at $2.00, as the company approaches important clinical data readouts in the second half of 2025. The stock has shown strong momentum with a 12% gain over the past week and nearly 20% over six months, according to InvestingPro data.

The firm hosted Caribou CEO Dr. Rachel Haurwitz in a virtual fireside chat, focusing on the company’s upcoming value-inflecting readouts for its CB-010 treatment in B-cell non-Hodgkin lymphoma (B-NHL) and CB-011 in multiple myeloma (MM). With a current ratio of 7.6x and more cash than debt on its balance sheet, InvestingPro analysis suggests the company is well-positioned to fund its clinical programs.

Following a strategic reprioritization in the second quarter of 2025, Caribou extended its cash runway by focusing resources exclusively on these two key programs, which Citi believes will begin to generate positive enterprise value for the stock.

Citi supports management’s view that Caribou’s allogeneic CAR-T value proposition appears compelling due to advantages in access, scale, and speed compared to autologous CAR-T therapies.

The firm has added a 90-day upside short-term view on Caribou heading into the expected second half 2025 data readouts, anticipating that the efficacy advantages of the company’s partial HLA matching strategy will be demonstrated in the upcoming CB-010 data.

In other recent news, Caribou Biosciences has regained compliance with Nasdaq’s minimum bid price requirement, maintaining a closing bid price of at least $1.00 per share from June 3 through June 17, 2025. The company, based in Berkeley, California, filed this information with the Securities and Exchange Commission. In addition to this, H.C. Wainwright analyst Robert Burns revised the price target for Caribou Biosciences shares, lowering it from $9.00 to $3.00, while maintaining a Buy rating. This revision follows Caribou’s strategic decision to focus on its oncology clinical programs, halting other trials and reducing its workforce by about 32%.

The company plans to concentrate on its CB-010 and CB-011 programs, targeting large B cell lymphoma and multiple myeloma, respectively. Caribou expects these strategic moves to extend its financial resources into the second half of 2027, with $212.5 million in funds reported as of the end of the first quarter of 2025. Clinical data from the CB-010 and CB-011 trials are anticipated later this year, with significant follow-up data expected. Additionally, the company’s cost-saving measures are projected to result in one-time cash payments between $2.5 and $3.5 million. These developments underscore Caribou’s commitment to advancing its lead oncology programs amid challenging market conditions.

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