I-Mab stock price target lowered to $7 at H.C. Wainwright

On Friday, H.C. Wainwright adjusted its price target for I-Mab (NASDAQ:IMAB) shares, reducing it from $8.00 to $7.00, but maintained a Buy rating on the stock. Currently trading at $0.73, near its 52-week low of $0.70, InvestingPro analysis suggests the stock is undervalued. Analyst Andrew Fein provided insights into the biotechnology company’s ongoing strategic shifts and operational updates. I-Mab has recently completed the full divestiture of its China operations, pivoting to focus on its role as a U.S.-based biotech company. Fein highlighted the company’s lead clinical asset, givastomig, a bispecific antibody targeting Claudin 18.2 x 4-1BB, noting its progression based on promising data and a unique mechanism of action.

The company’s cash reserves are expected to support its development efforts into 2027, which includes a concentrated push on givastomig for first-line gastric cancer treatment. According to InvestingPro data, I-Mab maintains a strong balance sheet with more cash than debt, supporting its operational strategy. I-Mab has streamlined its operations, introduced new leadership in the United States, and is allocating resources toward upcoming milestones for givastomig. Discover 8 more exclusive InvestingPro Tips and comprehensive financial analysis in our Pro Research Report. Fein also mentioned the ongoing development of uliledlimab and ragistomig, which continues through partnerships, with the option for I-Mab to re-engage depending on future data outcomes.

Fein’s commentary underscores the belief that I-Mab is significantly undervalued considering the clinical potential of its product candidates. With analyst targets ranging from $4 to $8 and the stock showing oversold conditions based on RSI, InvestingPro metrics support this view. The revised price target reflects a strategic reassessment while reaffirming the company’s strong investment potential due to its promising pipeline. Despite the price target adjustment, the Buy rating indicates continued confidence in I-Mab’s market position and the anticipated success of its lead clinical asset.

In other recent news, I-Mab has been notified of non-compliance with Nasdaq’s minimum bid price requirement. The company’s American Depositary Shares (ADS) did not meet the $1.00 minimum bid price over a specified trading period, and I-Mab has until September 15, 2025, to regain compliance. In a separate development, I-Mab announced the completion of enrollment for the first dose expansion cohort of its Phase 1b givastomig combination study ahead of schedule. This study is evaluating givastomig for the treatment of gastric cancer, with results from the dose expansion study expected in the first half of 2026. Additionally, I-Mab’s Chairman, Wei Fu, plans to purchase up to $2 million of the company’s ADSs on the open market, signaling confidence in the company’s strategic direction. The company has prioritized givastomig as its primary clinical program, with early study results anticipated in the latter half of 2025. I-Mab’s financial runway is projected to extend into 2027, offering a buffer for ongoing and future projects.

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