Street Calls of the Week
Investing.com - H.C. Wainwright downgraded Arcturus Therapeutics (NASDAQ:ARCT) from Buy to Neutral and set a price target of $12.00, citing concerns about the company’s cystic fibrosis (CF) program. According to InvestingPro data, the stock has shown significant volatility, with a 60% surge over the past six months despite maintaining strong liquidity with a current ratio of 5.9.
The research firm indicated it does not believe the CF program warrants advancement to later-stage clinical trials, based on multiple conversations with key opinion leaders regarding the interim Phase 2 ARCT-032 CF data.
H.C. Wainwright suggested that Arcturus would be better positioned to invest in early-stage assets rather than continuing with the current CF program development.
As a result of this assessment, the firm has removed all value from both the CF and OTC deficiency programs in its financial model for the company.
The downgrade reflects a significant shift in H.C. Wainwright’s outlook for Arcturus Therapeutics’ pipeline strategy and potential future revenue streams.
In other recent news, Arcturus Therapeutics has reported interim results from its Phase 2 clinical trial of ARCT-032, an inhaled mRNA therapy for cystic fibrosis. The treatment was generally safe and well-tolerated, with early signs of efficacy shown by reductions in mucus plugs and mucus volume in some participants. Despite these findings, the data was described as "underwhelming" by Leerink Partners, leading them to lower their price target for Arcturus Therapeutics from $54.00 to $17.00, although they maintained an Outperform rating. Similarly, Laidlaw reduced its price target from $79.00 to $68.00, maintaining a Buy rating, following the interim results from the second dose cohort. H.C. Wainwright, however, initiated coverage with a Buy rating and a $60.00 price target, citing Arcturus as a "platform-validated mRNA innovator" with promising technologies. These developments have significantly impacted the company’s near-term outlook. The mixed reactions from analysts reflect the complexity of interpreting the clinical trial data and its implications for the company’s future.
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