H.C. Wainwright reiterates buy rating on Cabaletta Bio stock

Published 12/06/2025, 14:06
H.C. Wainwright reiterates buy rating on Cabaletta Bio stock

H.C. Wainwright maintained its buy rating and $25.00 price target on Cabaletta Bio Inc . (NASDAQ:CABA) Thursday following promising clinical data presented at EULAR 2025. The stock, currently trading at $1.75, has seen significant volatility lately, with InvestingPro data showing a 19.7% decline in the past week. Analyst targets range from $3 to $28, suggesting potential upside according to Wall Street consensus.

The biopharmaceutical company reported new data from 18 patients treated with its rese-cel therapy across multiple autoimmune disease studies. Seven of eight patients in the REST-Myositis study achieved clinical responses while discontinuing immunomodulators and tapering or eliminating steroids. While the company maintains a strong current ratio of 3.96x and holds more cash than debt, InvestingPro analysis indicates rapid cash burn - a crucial factor for investors monitoring clinical-stage biotech companies.

The REST-SLE study showed all seven patients achieved clinical responses while discontinuing immunomodulators and glucocorticoids. Two patients in the REST-SSc study demonstrated meaningful improvements in modified Rodnan Skin Score after stopping immunomodulatory drugs.

The safety profile remains favorable with 94% of patients experiencing either no cytokine release syndrome or only grade 1 CRS. The company reported that 89% of patients had no immune effector cell-associated neurotoxicity syndrome (ICANS).

Cabaletta Bio has enrolled 51 patients and dosed 24 patients by the end of May, with enrollment accelerating to approximately two patients per week. The company expects to have 30-40 or more patients with three months of data across trials by the American College of Rheumatology meeting in November. With a market cap of $88.8 million and current InvestingPro Fair Value analysis suggesting the stock is undervalued, investors seeking deeper insights can access comprehensive financial health metrics and 12 additional ProTips through InvestingPro’s detailed research reports.

In other recent news, Cabaletta Bio announced a public offering of shares and warrants expected to raise approximately $100 million in gross proceeds. This offering includes 39.2 million shares of common stock and 10.8 million pre-funded warrants, each paired with accompanying warrants to purchase additional shares, priced at $2.00 per share and $1.99999 per pre-funded warrant. The warrants are exercisable at $2.50 per share and expire fifteen months from issuance. Jefferies, TD Cowen, and Cantor are managing the offering, which is expected to close around June 12, 2025. Additionally, Cabaletta reported positive clinical data for its investigational cell therapy, rese-cel, showing promising results in patients with myositis, lupus, and systemic sclerosis. The company plans to engage in registrational discussions with the FDA for various conditions throughout 2025 and 2026. In a strategic move to retain key personnel, Cabaletta Bio also announced a repricing of stock options for employees and executives, setting a new exercise price at $1.92 per share. This decision aims to motivate and retain key contributors during a critical phase in the company’s operations.

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