H.C. Wainwright initiates Arcturus Therapeutics stock with Buy rating on mRNA platform

Published 04/09/2025, 12:06
H.C. Wainwright initiates Arcturus Therapeutics stock with Buy rating on mRNA platform

Investing.com - H.C. Wainwright initiated coverage on Arcturus Therapeutics (NASDAQ:ARCT) with a Buy rating and a $60.00 price target on Thursday. According to InvestingPro data, analyst targets for ARCT range from $42 to $140, with 8 analysts recently revising earnings estimates upward.

The research firm cited Arcturus as a "platform-validated mRNA innovator with near-term catalysts in rare disease" that could significantly re-rate the stock. H.C. Wainwright highlighted the company’s proprietary LUNAR LNP chemistry and exclusive mRNA purification technology that enable tolerable repeat dosing and differentiated tissue targeting. InvestingPro analysis shows the company maintains a "GOOD" overall financial health score, with particularly strong ratings in relative value and cash flow metrics.

Arcturus’s lead candidate ARCT-032, an inhaled mRNA therapy for cystic fibrosis, is expected to report interim Phase 2 data in September 2025. The therapy targets Class I patients who represent approximately 18% of the cystic fibrosis population currently unserved by modulators.

The company’s ARCT-810 for OTC deficiency has shown promising Phase 2 results, with glutamine normalization, ammonia control, and restoration of ureagenesis to at least 50% of normal levels. Phase 3 regulatory alignment is expected in the first half of 2026.

H.C. Wainwright noted that Arcturus has approximately $253 million in cash, extending its runway into 2028, positioning the company to deliver multiple clinical readouts over the next 12 months that could "unlock significant value and further validate its differentiated mRNA platform." The company’s strong liquidity position is confirmed by InvestingPro data, showing a current ratio of 5.9 and more cash than debt on its balance sheet. Get access to the complete Arcturus Therapeutics Research Report and analysis of 1,400+ other stocks with InvestingPro.

In other recent news, Arcturus Therapeutics reported its second-quarter 2025 financial results, which fell short of expectations. The company posted a net loss per share of ($0.34), which was significantly below the forecasted earnings per share of $3.21, resulting in a negative surprise of 110.59%. Revenue for the quarter was $28 million, marking a decrease from the previous year. Wells Fargo responded to these results by lowering its price target for Arcturus Therapeutics from $45.00 to $42.00, while maintaining an Overweight rating on the stock. The firm cited updated model assumptions following the company’s earnings report. Despite the disappointing earnings, Wells Fargo’s continued positive rating suggests confidence in the company’s long-term prospects. These developments are part of the latest updates concerning Arcturus Therapeutics.

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