H.C. Wainwright cuts OnKure Therapeutics price target to $34

Published 18/03/2025, 12:48
H.C. Wainwright cuts OnKure Therapeutics price target to $34

Tuesday, shares of OnKure Therapeutics Inc. (NASDAQ:OKUR) experienced a shift in market expectations after H.C. Wainwright analyst Robert Burns adjusted the company’s price target. The new target is set at $34.00, down from the previous $40.00, while the firm maintained a Buy rating on the stock. According to InvestingPro data, analyst targets currently range from $30 to $40, with a strong Buy consensus rating of 1.2. The stock, trading at $4.82, has declined over 74% in the past six months.

Burns’ reassessment follows OnKure’s presentation of initial results for its lead candidate, OKI-219, a mutant-selective PI3KαH1047R inhibitor currently in Phase 1 trials for solid tumors. The data, revealed last year at the San Antonio Breast Cancer Symposium (SABCS), demonstrated that OKI-219, administered at 900mg twice daily, achieved steady-state exposure levels. InvestingPro analysis reveals the company maintains a strong liquidity position with a current ratio of 10.73 and more cash than debt on its balance sheet, though it’s currently burning through cash rapidly. Get access to 12 more exclusive ProTips and detailed financial metrics with InvestingPro. These levels provided near-continuous coverage of the in vivo EC80 for pAKT inhibition, which is associated with significant antitumor activity in preclinical models.

Despite the absence of objective responses in patients treated at the 900mg dose level, who were on study for less than 50 days, the drug was well-tolerated across all dose levels. Importantly, there were no reports of hyperglycemia, and only Grade 1 treatment-related adverse events (TRAEs) were observed. Furthermore, no dose interruptions, delays, reductions, or discontinuations due to adverse events were reported.

Looking ahead, Burns anticipates new developments from OnKure Therapeutics. Updated results for OKI-219 monotherapy and initial results for the combination of OKI-219 with FASLODEX (fulvestrant) are expected in the second half of 2025, with the next earnings report due on May 8, 2025. The continued support of the Buy rating reflects the firm’s confidence in the potential of OnKure’s research and development efforts, despite the lowered price target. Based on InvestingPro Fair Value analysis, the stock appears undervalued at current levels, though analysts don’t expect profitability this year.

In other recent news, OnKure Therapeutics has caught the attention of investors following a significant analyst update. Jones Trading initiated coverage on the company with a Buy rating and set a price target of $32. This development comes in the wake of heightened interest in the PI3Kα inhibitor space, especially after Lilly acquired Scorpion Therapeutics for $2.5 billion, driven by promising Phase 1 data. OnKure’s leading compound, OKI-219, is a point-mutation specific inhibitor targeting PI3Kα with the H1047R mutation, aiming to address tolerability issues common in this drug class. Jones Trading highlighted OnKure’s strategic approach in developing targeted therapies, which could provide a competitive edge in the oncology market. The firm’s analysis underscores the potential of OnKure’s lead asset, OKI-219, in advancing precision oncology treatments. Investors are advised to monitor OnKure’s progress in clinical trials as it seeks to establish itself in the targeted oncology sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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