H.C. Wainwright assumes coverage on Eledon stock with buy rating

H.C. Wainwright analyst Yi Chen assumed coverage on Eledon Pharmaceuticals (NASDAQ:ELDN) with a buy rating and a $9.00 price target on Wednesday. Currently trading at $2.81, the clinical-stage biotech company has a market capitalization of $168 million. According to InvestingPro data, analyst targets range from $8 to $10, suggesting significant upside potential.

The clinical-stage biotechnology company focuses on developing an antibody targeting CD40 ligand (CD40L) to prevent rejection of transplanted organs and treat neuroinflammation. Its lead drug candidate, tegoprubart, is an IgG1 and anti-CD40L antibody with high affinity to CD40L.

According to H.C. Wainwright, tegoprubart may offer improved efficacy compared to anti-CD40 receptor approaches because it blocks CD40L rather than the CD40 receptor, inhibiting both CD40 and CD11 costimulatory signaling pathways.

The firm noted that interim results from Eledon’s Phase 1b trial demonstrated that tegoprubart is "generally safe and well tolerated in patients undergoing de novo kidney transplantation."

H.C. Wainwright also mentioned that Eledon’s Phase 2 trial is expected to report topline results in the fourth quarter of 2025.

In other recent news, Eledon Pharmaceuticals reported a net loss of $0.08 per basic share for the first quarter of 2025. Following this earnings report, Cantor Fitzgerald maintained its Overweight rating on the company, suggesting confidence in its future performance. Analysts at Stifel have updated their financial model for Eledon Pharmaceuticals, resulting in improved earnings per share estimates for 2025 and 2026 due to a revised operating expense forecast. Additionally, Eledon Pharmaceuticals has appointed Deloitte & Touche LLP as its new independent registered public accounting firm for the fiscal year ending December 31, 2025. This change follows the dismissal of Crowe LLP, with no disagreements on accounting principles noted during the transition. The company’s Audit Committee approved this transition, ensuring continuity in financial reporting standards. Eledon Pharmaceuticals has stated that there were no reportable events or disagreements with Deloitte during the transition period. The appointment of Deloitte reflects the company’s commitment to high standards in financial reporting and auditing practices.

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