Street Calls of the Week
Investing.com - Clear Street initiated coverage on Dianthus Therapeutics (NASDAQ:DNTH) with a Buy rating and a $100.00 price target on Tuesday. The stock, currently trading at $37.46, has shown remarkable momentum with a 74% surge over the past six months and is currently near its 52-week high of $38.59.
The research firm believes Dianthus’s lead drug candidate claseprubart is a "best-in-class complement inhibitor" well-positioned to improve treatment standards in three autoimmune conditions currently in clinical testing: generalized myasthenia gravis (gMG), chronic idiopathic demyelinating polyneuropathy (CIDP), and multifocal motor neuropathy (MMN). According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 13.12 and holds more cash than debt on its balance sheet.
Clear Street highlighted recent Phase 2 data in gMG as supportive evidence for the drug’s potential not only in that indication but also in CIDP and MMN, which expect data updates in the second half of 2026.
The firm estimates each of these therapeutic areas represents a market opportunity exceeding $1-2 billion, providing substantial growth potential for Dianthus.
Despite the stock’s strong year-to-date performance of nearly 70%, Clear Street believes Dianthus shares have room for further appreciation from the current approximately $900 million enterprise value (pro forma post-raise) given the drug’s clinical data, scientific rationale, and pharmacokinetic/pharmacodynamic profile. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with 12 additional exclusive insights available to subscribers.
In other recent news, Dianthus Therapeutics announced it has successfully closed its public offering, raising approximately $288 million in gross proceeds. The company sold 7,627,879 shares of common stock at $33.00 per share, including the full exercise of underwriters’ option to purchase additional shares. This follows the announcement of an upsized public offering priced at $251 million, with pre-funded warrants included for certain investors. Additionally, Jefferies has raised its price target for Dianthus Therapeutics to $66, citing positive data from the company’s Phase II trial for generalized myasthenia gravis (gMG). H.C. Wainwright maintained its Buy rating and $40.00 price target, following positive results from the Phase 2 MaGic study evaluating claseprubart. Raymond James also increased its price target to $63, maintaining an Outperform rating. These developments highlight a growing confidence among analysts regarding the company’s recent trial results and financial maneuvers.
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