Jefferies raises Cargo Therapeutics stock price target to $5 on Concentra acquisition

Published 08/07/2025, 18:14
Jefferies raises Cargo Therapeutics stock price target to $5 on Concentra acquisition

Investing.com - Jefferies raised its price target on Cargo Therapeutics (NASDAQ:CRGX) to $5.00 from $3.70 while maintaining a Hold rating, following the company’s acquisition announcement. The stock, currently trading at $4.61, has experienced a significant decline of over 70% in the past year, according to InvestingPro data.

Cargo Therapeutics disclosed it will be acquired by Concentra for $4.38 per share plus two contingent value rights (CVRs). The transaction is expected to close by August 2025.

The first CVR entitles shareholders to 100% of cash exceeding $218 million at closing, while the second provides 80% of proceeds from any pipeline program sales within two years after the deal closes.

Jefferies estimates that the total value for shareholders could approach $5 per share at closing, based on projected cash burn and potential asset sale proceeds.

The firm maintained its Hold rating on Cargo Therapeutics stock while adjusting its price target to reflect the acquisition terms.

In other recent news, CARGO Therapeutics , Inc. has announced a definitive merger agreement with Concentra Biosciences, LLC. Under the terms of the agreement, Concentra will acquire CARGO for $4.379 in cash per share, along with a non-transferable contingent value right (CVR). This CVR allows shareholders to receive 100% of CARGO’s closing net cash exceeding $217.5 million and 80% of net proceeds from any disposition of certain product candidates within two years of closing. The board of directors at CARGO unanimously approved the transaction following a strategic review process. The acquisition requires several conditions to be met, including the tendering of a majority of outstanding shares and the availability of at least $217.5 million in cash at closing. Officers, directors, and certain stockholders, holding about 17.4% of CARGO’s common stock, have agreed to support the transaction. The acquisition is anticipated to close in August 2025, pending regulatory approvals and other customary conditions. TD Cowen is acting as the exclusive financial advisor to CARGO, while Latham & Watkins LLP and Gibson, Dunn & Crutcher LLP are providing legal counsel to CARGO and Concentra, respectively.

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