Clear Street initiates Rapt Therapeutics stock with buy rating

Published 05/06/2025, 22:40
Clear Street initiates Rapt Therapeutics stock with buy rating

On Thursday, Clear Street analysts initiated coverage of Rapt Therapeutics (NASDAQ:RAPT) stock with a Buy rating and set a price target of $3.00, within the broader analyst range of $1.00 to $6.00. The analysts expressed strong confidence in RPT904, a potentially leading anti-IgE antibody for food allergy and chronic spontaneous urticaria.

Rapt Therapeutics’ stock has seen a 75.5% decline over the past year, a drop primarily linked to the discontinuation of an unrelated asset. This decline has created what the analysts describe as a substantial opportunity, with a negative enterprise value of approximately $44 million against $179.3 million in cash. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 21.11, indicating robust short-term financial health.

The analysts noted that the market’s pessimism, which suggests a zero valuation, may not be justified. They emphasized that the previous asset discontinuation does not affect the prospects of RPT904. With a beta of -0.14, the stock tends to move independently of market trends, as revealed by InvestingPro analysis, which includes 10+ additional key insights for subscribers. Comparative Phase 2 trial data from China, expected in the second half of 2025, will be crucial for validating RPT904’s potential.

The analysts believe these developments create an attractive entry point for investors, with significant near-term upside potential for Rapt Therapeutics, currently valued at a market capitalization of $133.6 million.

In other recent news, Rapt Therapeutics has been the focus of several analyst evaluations and strategic developments. H.C. Wainwright initiated coverage on Rapt Therapeutics with a Buy rating, setting a price target at $6.00, highlighting the potential of their primary candidate, RPT904, which is designed to improve upon existing treatments for conditions like food allergies and asthma. This candidate, acquired from Jemincare, has shown promising results in early trials, with a longer half-life that may allow for less frequent dosing. Meanwhile, UBS revised its price target for Rapt Therapeutics to $1.00 from $2.00, maintaining a Neutral rating. This adjustment considers the recent in-licensing agreement for RPT904 and the company’s cash position, which is expected to support ongoing trials.

The company plans to start a Phase 2b trial for food allergies in 2025, with results anticipated in 2027. Concurrently, Jemincare is conducting trials in China, which will inform Rapt’s development strategy. H.C. Wainwright also reaffirmed its Buy rating and a $10.00 price target, citing confidence in Rapt’s licensing agreement with Jemincare and its clinical development strategy. The agreement includes a $35 million upfront fee and potential milestone payments, reflecting a significant investment in RPT904’s development. These developments indicate a strategic focus on expanding Rapt’s pipeline and addressing a substantial market opportunity in food allergies.

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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