Enanta stock price target raised to $23 by JMP

On Wednesday, JMP analysts increased their price target on Enanta Pharmaceuticals (NASDAQ:ENTA) shares to $23, up from the previous $21, while maintaining a Market Outperform rating. Currently trading at $5.23, the stock has seen a significant decline of over 48% in the past six months. According to InvestingPro data, analyst targets range from $5 to $23, with the current price suggesting potential upside based on InvestingPro’s Fair Value analysis. The adjustment follows Enanta’s recent financial results and the anticipation of mid-stage RSV trial outcomes.

Enanta Pharmaceuticals, a biotechnology firm specializing in the development of treatments for viral infections and liver diseases, reported its second-quarter fiscal year 2025 results on Tuesday. The company concluded the quarter with a substantial cash reserve of $193 million, maintaining a strong current ratio of 5.29. However, InvestingPro analysis indicates the company is quickly burning through cash, with an EBITDA of -$99.26 million in the last twelve months. Additionally, Enanta provided guidance indicating its financial resources should sustain operations well into fiscal year 2028.

The revised price target from JMP comes on the heels of a $33.8 million tax refund Enanta received in April. The analysts at JMP have based their updated target on a risk-adjusted, discounted cash flow (DCF) analysis, taking into account the company’s recent financial boon.

Enanta is currently conducting a Phase 2 trial, dubbed RSVHR, which involves approximately 180 adults at higher risk of respiratory syncytial virus (RSV). The company expects to release top-line results concerning symptom resolution from this trial in the third quarter of 2025.

The biotech firm is also making strides in its immunology pipeline. Enanta’s oral KIT and STAT6 inhibitor candidates have shown promising drug-like properties. The company is engaged in IND-enabling activities for its KIT inhibitor EPS-1421 and anticipates selecting a STAT6-inhibitor candidate in the second half of 2025. Moreover, Enanta plans to announce a third immunology program within the current year.

JMP’s analysts have updated their financial model for Enanta to reflect the company’s performance in the latest quarter and the progress in its drug development programs. With a market capitalization of $111.57 million and operating with a moderate level of debt, the company’s financial health score on InvestingPro is currently rated as WEAK. Investors can access detailed analysis and 10 additional ProTips about Enanta through InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.

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