Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Jefferies has reduced its price target on Cabaletta Bio Inc . (NASDAQ:CABA) to $14.00 from $28.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock currently trades at $1.45, significantly below its 52-week high of $6.26, though analysts maintain a bullish consensus with price targets ranging from $3 to $28.
The firm cited Cabaletta’s recent capital raise as the reason for the price target adjustment, though it continues to view the company favorably as "a front-runner in cell therapy for autoimmune" diseases, targeting a market opportunity exceeding $10 billion. InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, though it’s quickly burning through cash - crucial factors for investors tracking this $130M market cap biotech firm.
Jefferies noted that following FDA alignment on the registrational trial for CD19-CART Rese-cel in myositis, Cabaletta plans to begin patient enrollment in the second half of this year, with completion expected by mid-2026 and a Biologics License Application (BLA) submission anticipated in 2027.
The firm expects full Phase 1/2 data to be released in the second half of 2025, which it believes may "further showcase its compelling efficacy, providing upside opportunity."
Jefferies also highlighted upcoming early data in pemphigus vulgaris (PV) without lymphodepletion, expected in October 2025.
In other recent news, Cabaletta Bio has announced the pricing of an underwritten public offering expected to raise approximately $100 million in gross proceeds. This offering includes 39.2 million shares of common stock and 10.8 million pre-funded warrants, each paired with accompanying warrants to purchase additional shares, priced at $2.00 per share of common stock with its accompanying warrant. Additionally, Cantor Fitzgerald reiterated its Overweight rating and $15.00 price target for Cabaletta Bio, maintaining a positive outlook following the company’s presentation of clinical data at the EULAR conference. H.C. Wainwright also maintained its buy rating and a $25.00 price target, highlighting promising clinical data from 18 patients treated with Cabaletta Bio’s rese-cel therapy. Seven of eight patients in the REST-Myositis study achieved clinical responses, allowing them to discontinue immunomodulators and taper or eliminate steroids. These developments reflect Cabaletta Bio’s ongoing efforts in advancing its clinical programs and securing financial resources through public offerings.
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