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Investing.com - Clear Street has raised its price target on Rapt Therapeutics (NASDAQ:RAPT) to $24.00 from $3.00 while maintaining a Buy rating, citing the potential of the company’s RPT904 antibody. According to InvestingPro data, analyst targets for RAPT range from $8 to $48, with the stock currently trading at $9.99, suggesting significant upside potential. The stock has shown strong momentum, gaining over 7% in the past six months despite broader market volatility.
The firm points to forthcoming second-half 2025 data that will directly compare RPT904—described as a potentially best-in-class anti-IgE antibody—with XOLAIR as a major catalyst for Rapt’s valuation. RPT904 is advancing for food allergy treatment with Phase 2b trials starting in the second half of 2025, while data from Rapt’s Chinese partner Jemincare on chronic spontaneous urticaria (CSU) and asthma applications is imminent. InvestingPro analysis reveals the company maintains a strong financial health score, particularly in cash flow management, which is crucial for supporting its ongoing clinical trials.
Clear Street notes that RPT904 targets the same epitope as XOLAIR but features YTE mutations that extend its half-life, potentially allowing for less frequent dosing (every 2-12 weeks compared to XOLAIR’s biweekly schedule). The firm cites surveys indicating willingness among payers and prescribers to pay a 15% premium over XOLAIR’s branded price despite expected biosimilar competition by year-end 2026.
The research firm highlights that RPT904’s streamlined dosing could potentially reach 30% of food allergy patients with higher body weight or elevated serum IgE levels who cannot currently use XOLAIR. The food allergy market remains largely untapped, as demonstrated by XOLAIR exceeding 60,000 patients and generating over $1 billion in its first full year.
Rapt Therapeutics maintains a cash position of $179.3 million, which Clear Street believes adequately funds the company through Phase 2b food allergy data expected in the first half of 2027 and the launch of a Phase 2/3 CSU trial in the second half of 2026. The price target adjustment also reflects Rapt’s 1-for-8 reverse stock split effective June 16, 2025, and Clear Street’s switch to using diluted share count for valuation calculations. InvestingPro data confirms the company’s strong liquidity position with a current ratio of 21.11 and minimal debt-to-equity of 0.02. Subscribers to InvestingPro can access detailed financial health metrics and eight additional ProTips that provide crucial insights into RAPT’s investment potential, along with comprehensive Pro Research Reports available for over 1,400 US stocks.
In other recent news, RAPT Therapeutics has been in the spotlight with several noteworthy developments. JPMorgan upgraded the company’s stock rating to Neutral from Underweight, citing the de-risked mechanism of its lead drug candidate RPT904, which shows promise in the Food Allergy and Chronic Spontaneous Urticaria markets. Meanwhile, H.C. Wainwright raised its price target for RAPT Therapeutics to $27 from $6, maintaining a Buy rating after Merck (NSE:PROR)’s acquisition of Verona Pharma (NASDAQ:VRNA), a company with FDA-approved treatments for chronic lung diseases. RAPT Therapeutics also announced the expansion of its Board of Directors, appointing Scott Braunstein, M.D., and Ashley Dombkowski, Ph.D., as new members. Dr. Braunstein will join the Audit Committee, while Dr. Dombkowski will be part of the Nominating and Corporate Governance Committee. Additionally, RAPT Therapeutics will implement a 1-for-8 reverse stock split, effective June 16, 2025, with trading on a split-adjusted basis commencing the following day. These developments reflect the company’s strategic moves and ongoing adjustments in its corporate structure.
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