Street Calls of the Week
Investing.com - JMP Securities lowered its price target on Jasper Therapeutics (NASDAQ:JSPR) to $6 from $12 while maintaining a Market Outperform rating on Monday. According to InvestingPro data, the stock is currently trading near $2.50, down about 89% over the past year, with analyst targets ranging from $4 to $51.
The firm cited significant dilution from a recently announced $30 million public offering as the primary reason for the price target reduction.
JMP noted that Jasper Therapeutics has released early findings from its investigation into confounding results from two cohorts in the BEACON study, with issues potentially related to clinical sites or enrolled patients.
The newly announced financing is expected to extend the company’s cash runway past upcoming chronic spontaneous urticaria (CSU) data anticipated at year-end 2025 and into the third quarter of 2026.
Despite the price target reduction, JMP maintained its positive Market Outperform rating on the stock ahead of the upcoming clinical data.
In other recent news, Jasper Therapeutics has announced a public offering expected to raise approximately $30 million in gross proceeds. The offering includes 11,670,707 shares of common stock with accompanying warrants priced at $2.43 per share, alongside 675,000 pre-funded warrants. The common warrants are set to be exercisable starting six months after issuance, with an exercise price of $2.92 per share for a period of four years. This move follows the company’s announcement of its intention to launch the public offering, aimed at advancing the development of its antibody therapy, briquilimab. Additionally, BTIG has adjusted its price target for Jasper Therapeutics from $20 to $7, although it maintained a Buy rating on the stock. The adjustment comes amid updates on an investigation into a faulty drug lot and the company’s recent fundraising activities. These developments highlight ongoing efforts by Jasper Therapeutics to secure funding and address operational challenges.
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