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Investing.com - H.C. Wainwright raised its price target on Rapt Therapeutics (NASDAQ:RAPT) to $27.00 from $6.00 on Thursday, while maintaining a Buy rating on the stock. The company, currently valued at $140 million, maintains a strong balance sheet with more cash than debt and a healthy current ratio of 21.11, according to InvestingPro data.
The price target adjustment follows Merck (NSE:PROR)’s Wednesday announcement that it would acquire Verona Pharma (NASDAQ:VRNA), a company developing treatments for chronic lung diseases, for $10 billion. Verona’s lead product, ensifentrine (Ohtuvayre), received FDA approval in June 2024 for COPD maintenance treatment. InvestingPro analysis suggests RAPT is currently undervalued, with analyst targets ranging from $8 to $48 per share.
H.C. Wainwright noted that Merck’s interest in Verona could benefit other companies with immunologic and asthmatic disease programs, including Rapt Therapeutics, which is developing RPT904 for food allergy and asthma treatment.
RPT904 is a half-life extended anti-IgE antibody built on the backbone of FDA-approved omalizumab. Rapt acquired the ex-China rights for RPT904 from Jemincare in December 2024, with Phase 2a asthma and Phase 2 chronic spontaneous urticaria trial results expected in the second half of 2025.
The firm’s price target adjustment also accounts for Rapt’s 1-for-8 reverse split, which became effective on June 17, 2025.
In other recent news, RAPT Therapeutics has expanded its Board of Directors by appointing Scott Braunstein, M.D., and Ashley Dombkowski, Ph.D., increasing the board’s size from five to seven members. Braunstein joins the Audit Committee, while Dombkowski will serve on the Nominating and Corporate Governance Committee. The company also announced a 1-for-8 reverse stock split, effective June 16, 2025, which will reduce the number of outstanding shares from approximately 132.3 million to 16.5 million. This move is often aimed at increasing share price by reducing the number of shares in circulation.
In analyst updates, Clear Street has initiated coverage on RAPT Therapeutics with a Buy rating and a price target of $3.00, expressing confidence in the company’s lead product candidate, RPT904. H.C. Wainwright also initiated coverage with a Buy rating, setting a higher price target of $6.00, citing RPT904’s improved pharmacokinetics and potential as a leading anti-IgE antibody for various allergic conditions. RPT904 is in development for food allergy, asthma, and chronic spontaneous urticaria, with Phase 2 trial data from China expected in the latter half of 2025. These developments present an optimistic outlook for RAPT Therapeutics, according to the analysts.
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