Jasper stock remains Outperform with briquilimab study results poised to close valuation gap

Published 02/01/2025, 15:40
Jasper stock remains Outperform with briquilimab study results poised to close valuation gap

On Thursday, Oppenheimer maintained its Outperform rating and $80.00 price target for Jasper Therapeutics (NASDAQ:JSPR), which currently trades at $21.38. According to InvestingPro data, analysts are highly bullish on the stock, with targets ranging from $43 to $90.

The firm's analyst highlighted the upcoming initial results from the BEACON trial, which are expected to be released during the week of January 6, 2025. The trial is evaluating the efficacy of briquilimab in treating Chronic Spontaneous Urticaria (CSU), a condition characterized by the spontaneous appearance of hives.

The BEACON study's findings will include data from all dosage groups in the Phase 1b/2a study, up to a 240mg dose. Investors are particularly keen on the UAS7 (Urticaria Activity Score over 7 days) results at week 12, as well as the preliminary safety profile of the drug.

InvestingPro analysis reveals the company maintains a strong financial position with a current ratio of 7.61 and more cash than debt on its balance sheet, providing runway for its clinical programs. The analyst at Oppenheimer posits that a favorable outcome would be briquilimab demonstrating comparable efficacy, particularly in terms of UAS7, and a potentially superior preliminary safety profile when contrasted with barzolvolimab, a competing treatment.

Oppenheimer's scenario analysis suggests a significant potential upside for Jasper Therapeutics' shares, with an estimated 83% probability-adjusted increase upon the release of the BEACON study results. This could help close the valuation gap between Jasper Therapeutics, currently valued at approximately $310 million, and its competitor, valued at about $1.7 billion.

The analyst also noted that further development of briquilimab could potentially reduce the timing gap to 12-18 months compared to its competitor. The anticipation surrounding the BEACON study results is high, as they could be a pivotal moment for Jasper Therapeutics in establishing its position in the market for CSU treatments.

With a market capitalization of $320.73 million and trading near its InvestingPro Fair Value, investors seeking deeper insights can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers crucial metrics and analysis for over 1,400 US stocks.

In other recent news, Jasper Therapeutics has been the focus of multiple analyst firms due to its promising earnings and revenue results. BMO Capital Markets initiated coverage on the company with an Outperform rating and a price target of $63.00, while H.C. Wainwright reaffirmed its Buy rating and a $65.00 stock price target. Additionally, Oppenheimer and BTIG maintained their positive stance with price targets of $80.00 and $90.00 respectively. TD Cowen also reaffirmed a Buy rating following promising initial data from a clinical trial.

These ratings come on the back of positive results from the company's SPOTLIGHT Phase 1b/2a study on briquilimab for treating Chronic Inducible Urticaria (CIndU) and the anticipation of the BEACON study results in chronic spontaneous urticaria (CSU). The company also received clearance from Health Canada to commence a Phase 1b/2a clinical trial for briquilimab as a potential treatment for asthma.

In addition, the U.S. Patent and Trademark Office registered a trademark for Jasper's proprietary Jasper c-Kit Mouse™ model, which has been instrumental in the clinical development of briquilimab.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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