Guggenheim reiterates Buy rating on Larimar Therapeutics stock with $26 target

Investing.com - Guggenheim has reiterated its Buy rating and $26.00 price target on Larimar Therapeutics (NASDAQ:LRMR), citing high confidence in the company’s regulatory pathway for its Friedreich’s ataxia treatment. The stock, which has surged 52.9% over the past six months, currently has strong analyst backing with targets ranging from $10 to $33. InvestingPro data reveals 6 analysts have recently revised their earnings expectations upward for the upcoming period.

The firm expressed optimism about nomlabofusp (recombinant frataxin, FXN) and its potential to meet FDA requirements for accelerated approval, which Larimar is targeting for a second-quarter 2026 filing. While the company maintains a healthy balance sheet with more cash than debt and a strong current ratio of 5.46, InvestingPro analysis indicates the company is currently burning through cash rapidly - a critical factor for investors to monitor.

Guggenheim highlighted that frataxin levels are mechanistically causative in Friedreich’s ataxia, and the FDA places significant weight on biomarkers with strong linkage to the disease, suggesting that demonstrating even a qualitative relationship between increased skin FXN and clinical benefit would be compelling for regulators.

The research firm noted that upcoming open-label extension data, expected this month, could serve as a key de-risking element if it shows any slowing of disease progression compared to baseline, particularly given the severity of the enrolled population where more than 50% are wheelchair-bound.

Regarding safety concerns, Guggenheim indicated that hypersensitivity reactions to the treatment are controllable with prophylactic antihistamines, resulting in a favorable risk-benefit profile in a disease with no approved disease-modifying therapy.

In other recent news, Larimar Therapeutics has been the focus of several analyst reports. JMP Securities maintained its Market Outperform rating on Larimar stock, setting a price target of $18, following the company’s recent equity financing. This move, while dilutive, has strengthened Larimar’s cash position. Truist Securities also kept its Buy rating and $18 price target, highlighting upcoming data from a 50mg open-label extension study expected in September. Guggenheim reiterated a Buy rating with a higher price target of $26, noting the company’s progress in its open-label extension data presentation scheduled for September 2025. Meanwhile, Jones Trading adjusted its price target to $10 from $12, citing the dilution from Larimar’s recent $69 million public offering. The offering increased Larimar’s cash reserves, potentially extending its financial runway into late 2026. These developments reflect ongoing interest and analysis from the investment community regarding Larimar’s financial and clinical progress.

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