H.C. Wainwright cuts Century Therapeutics target to $2

Published 03/04/2025, 12:36
H.C. Wainwright cuts Century Therapeutics target to $2

On Thursday, H.C. Wainwright analyst Mitchell Kapoor revised the price target for Century Therapeutics (NASDAQ:IPSC) shares, reducing it to $2.00 from the previous $5.00, while still recommending a Buy rating for the stock. The company, currently trading at $0.47 and down 87% over the past year, maintains analyst targets ranging from $2.00 to $8.00. According to InvestingPro analysis, the stock appears undervalued at current levels. Kapoor’s reassessment follows the company’s recent announcement to halt its main project, CNTY-101, which was in Phase 1 trials (ELiPSE-1) for B cell lymphomas. Century Therapeutics decided to discontinue the program after determining that the clinical data did not meet its criteria for being transformative in treating this patient population.

Despite the setback, Kapoor sees potential implications for the application of CNTY-101 in autoimmune diseases, citing the general safety observed and indications that the AlloEvasion technology was effective, which could allow for more effective repeat dosing. The company has indicated that it expects to present additional data in 2025, which could provide more insight into the durability and effectiveness of CNTY-101 for autoimmune conditions.

The discontinuation of the CNTY-101 program in B cell lymphomas has led to adjustments in H.C. Wainwright’s financial model for Century Therapeutics. As a result, the 12-month price target has been adjusted downward to reflect these changes. InvestingPro data reveals the company’s challenging financial position, with a Weak overall Financial Health score and significant negative EBITDA of -$121.86M in the last twelve months. Despite the reduction in the price target, Kapoor maintains a Buy rating, signaling confidence in the stock’s future performance.

Century Therapeutics has acknowledged the discontinuation of the program and is looking forward to presenting further data. The company’s focus may now shift more towards exploring the potential of CNTY-101 in autoimmune diseases, given the early signs of safety and efficacy.

Investors and stakeholders in Century Therapeutics will be closely monitoring the upcoming data presentations in 2025, as they could significantly influence the company’s strategic direction and the stock’s valuation. With the next earnings report due on May 8th, InvestingPro subscribers can access additional insights, including exclusive ProTips and detailed financial metrics to better evaluate the company’s future prospects. Kapoor’s updated price target and Buy rating reflect a cautious yet optimistic outlook for the company’s ability to pivot and find value in its technology for different therapeutic applications.

In other recent news, Century Therapeutics announced its fiscal year 2024 results and strategic updates, including a re-prioritization of its development pipeline. The company decided to discontinue the CNTY-101 drug in the ELiPSE-1 trial for relapsed/refractory non-Hodgkin lymphoma, which was anticipated by market observers. Concurrently, Century Therapeutics confirmed the enrollment of the first patient in the Phase I CALiPSO-1 trial of CNTY-101 for autoimmune diseases, with plans to commence dosing soon. Guggenheim analysts responded by lowering the price target for Century Therapeutics to $5.00 from $12.00, while maintaining a Buy rating, emphasizing the company’s distinct position in the autoimmune therapies market.

Additionally, Century Therapeutics received a notification from The Nasdaq Stock Market LLC regarding a potential delisting due to its share price falling below the $1.00 minimum requirement. The company has been granted a 180-day period to regain compliance. Century Therapeutics expressed its intent to monitor its share price closely and explore avenues to meet Nasdaq’s requirements. In collaboration with Friedrich-Alexander University Erlangen-Nürnberg, Century has launched a Phase 1/2 trial named CARAMEL to evaluate its investigational cell therapy CNTY-101 in patients with B-cell mediated autoimmune diseases. This trial aims to assess the safety and efficacy of the therapy, complementing the ongoing Phase 1 CALiPSO-1 trial.

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