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On Wednesday, JMP Securities maintained a positive outlook on Foghorn Therapeutics (NASDAQ:FHTX), reaffirming its Market Outperform rating and a $9.00 price target for the biotechnology firm’s stock, representing over 110% upside from the current price of $4.25. With a market capitalization of $236 million, FHTX has caught analysts’ attention, with targets ranging from $4 to $14. The firm’s stance comes amid progress in Foghorn’s clinical trials and strategic positioning of its therapeutic candidate, FHD-909.
JMP Securities highlighted the sustained interest from Eli Lilly and Company (NYSE:LLY) in chromatin biology, which is a key focus for Foghorn Therapeutics. According to InvestingPro data, FHTX maintains a strong financial position with more cash than debt on its balance sheet and liquid assets exceeding short-term obligations. The company’s FHD-909 is currently advancing through the First-in-Human (FiH) Phase 1 trial. Analysts at JMP Securities noted the combination data involving FHD-909 and various FDA-approved and developmental therapies, which have demonstrated synergistic effects.
The firm believes that Foghorn Therapeutics is strategically positioning FHD-909 for use in earlier lines of therapy. This strategy is expected to facilitate a swift progression of FHD-909 combinations following the FiH data. Foghorn Therapeutics has indicated that it anticipates releasing monotherapy data from the FiH trial towards the end of 2025 or the beginning of 2026. For deeper insights into FHTX’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis and 8 additional ProTips in the detailed Pro Research Report.
In addition to the developments surrounding FHD-909, JMP Securities also expressed optimism regarding Foghorn’s broader pipeline. The preclinical data from CBP and EBP degraders have shown promise. With the next earnings report due on May 12, 2025, investors will be closely monitoring the company’s cash burn rate and development progress. The firm is looking forward to additional information as Foghorn Therapeutics prepares for Investigational New Drug (IND) submissions, which are projected for 2026.
The reiteration of the $9.00 price target by JMP Securities reflects confidence in Foghorn Therapeutics’ potential and the anticipated milestones in its drug development pipeline. Investors and industry observers will be closely monitoring the company’s progress as it advances through clinical trials and continues its research in chromatin biology.
In other recent news, Foghorn Therapeutics reported several significant developments that may interest investors. The company has adjusted its at-the-market (ATM) offering, reducing the potential sale of shares from $200 million to $100 million. This amendment reflects a shift in the company’s financing strategy, though specific reasons for the decision were not disclosed. Additionally, Foghorn secured a $380 million upfront partnership with Eli Lilly, focusing on its lead asset, FHD-909, and a degrader targeting the same molecule. This collaboration includes significant milestone payments, underscoring the strength of Foghorn’s preclinical data.
On the analyst front, JMP Securities initiated coverage of Foghorn with a Market Outperform rating and a $9 price target, citing the company’s novel approach in targeting proteins for cancer treatment. H.C. Wainwright maintained a Buy rating with a $13 target, highlighting the potential of Foghorn’s Phase 1a/b study of FHD-909 to validate its broader strategy. B.Riley also initiated coverage with a Buy rating and a $10 target, emphasizing the market opportunity in SMARCA-mutated cancers. These analysts’ insights suggest optimism about Foghorn’s prospects in the therapeutic area of chromatin remodeling.
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