Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - BTIG lowered its price target on Jasper Therapeutics (NASDAQ:JSPR) to $7.00 from $20.00 on Friday, while maintaining a Buy rating on the stock. The company’s shares, which have declined nearly 90% over the past year according to InvestingPro data, currently trade significantly below analysts’ targets ranging from $4 to $51.
The biotech company’s shares fell approximately 5% following an update on its investigation into a faulty drug lot for briquilimab and the announcement of a $30 million raise through common stock and pre-funded warrants. InvestingPro analysis shows the company maintains a healthy current ratio of 2.1, though it’s currently burning through cash rapidly.
BTIG noted that findings from the investigation do not indicate issues with the drug product or substance, with the focus now shifting to study site conduct. The investigation remains on schedule for completion in the fourth quarter of 2025, with updates expected from both the 240mg Q8W and 240mg to 180mg Q8W cohorts late this year.
The firm highlighted compelling efficacy data from the July update for the 180mg Q8W OLE and 240mg/360mg single dose cohorts, with complete response rates ranging from 73-89%. Safety profiles remain favorable, with minimal hair and skin color changes and resolvable taste changes and neutrophil count decreases.
BTIG’s price target reduction reflects an update to the diluted share count in their model, though they continue to view briquilimab as "a safe and active drug" and anticipate that Jasper will use forthcoming data to inform its Phase 2b chronic spontaneous urticaria dose and schedule, with that trial expected to begin in mid-2026. According to InvestingPro, which offers comprehensive analysis of over 1,400 stocks, Jasper maintains minimal debt with a debt-to-equity ratio of just 0.09, though the company’s overall financial health score remains weak.
In other recent news, Jasper Therapeutics has announced the pricing of an underwritten public offering expected to raise approximately $30 million in gross proceeds. This offering includes 11,670,707 shares of common stock with accompanying warrants and 675,000 pre-funded warrants. The company plans to use the proceeds to advance the development of briquilimab, its antibody therapy targeting KIT (CD117) for mast cell-driven diseases. BTIG has reiterated its Buy rating on Jasper Therapeutics with a $20 price target, following the company’s second-quarter earnings report. Similarly, JMP Securities has maintained its Market Outperform rating and $12 price target, noting the company’s efforts to extend its cash runway after a recent setback. Jasper Therapeutics is also expected to provide an update on the ongoing BEACON study later this year. These developments highlight the company’s strategic financial and research initiatives.
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