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Investing.com - Citizens JMP has reiterated its Market Outperform rating and $12.00 price target on Jasper Therapeutics (NASDAQ:JSPR) despite a recent setback in the company’s CSU clinical trial program. The stock, currently trading at $3.68, has experienced significant volatility, falling over 45% in the past week. According to InvestingPro data, analyst targets range from $4 to $65, reflecting diverse views on the company’s potential.
The research firm attributed the disappointing update to a "bad drug lot" but maintained its positive outlook based on briquilimab’s differentiated schedule and risk/reward profile compared to competitors. JMP highlighted the drug’s 73% complete response rate and 82% well-controlled disease at 12 weeks, which it views favorably against Celldex (NASDAQ:CLDX)’s barzolvolimab. InvestingPro analysis shows the company maintains a strong liquidity position with cash exceeding debt, though it’s currently burning through cash reserves rapidly.
JMP expressed confidence in Jasper’s opportunity to salvage its BEACON trial by restarting existing patients on the drug and enrolling new patients. The firm estimates 10-12 new patients will need to be enrolled before September to have complete 12-week data by the end of the fourth quarter of 2025.
According to JMP, Jasper management indicated that protocol amendments should take approximately two weeks, with rapid enrollment possible since clinical sites are already operational. The firm considers enrolling at least eight patients "certainly plausible" given the timeline.
JMP believes the combined data from approximately 10-11 restarted patients plus roughly eight new patients across two dosing cohorts should provide sufficient information to evaluate the compound’s feasibility by December. With a market capitalization of just $55.28 million, InvestingPro analysis indicates the stock is currently undervalued relative to its Fair Value. Subscribers can access 12 additional ProTips and a comprehensive research report for deeper insights into JSPR’s financial health and market position.
In other recent news, Jasper Therapeutics announced a significant corporate reorganization, reducing its workforce by 50% to concentrate efforts on briquilimab development for chronic urticaria. The company has halted all other clinical and preclinical programs to focus on this priority, aiming to extend its cash runway. In the wake of these developments, several analysts have adjusted their outlook on Jasper Therapeutics. Citizens JMP lowered its price target from $70 to $12, citing a disappointing readout due to manufacturing issues, but maintained a Market Outperform rating, noting briquilimab’s potential differentiation. BMO Capital downgraded the stock from Outperform to Market Perform, mentioning challenges in interpreting trial data due to potential manufacturing complications. Evercore ISI also reduced its price target from $50 to $20, maintaining an Outperform rating, and expects Jasper to resolve current issues and enroll additional patients. Cantor Fitzgerald downgraded the stock from Overweight to Neutral, expressing concerns over clinical trial setbacks and development timelines. These recent developments highlight the challenges and strategic shifts Jasper Therapeutics is navigating in its focus on chronic urticaria treatments.
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