Jefferies resumes coverage on Cabaletta Bio stock with Buy rating

Investing.com - Jefferies has resumed coverage on Cabaletta Bio Inc. (NASDAQ:CABA) with a Buy rating and a $14.00 price target, joining a strong bullish consensus among analysts. According to InvestingPro data, analyst targets for CABA range from $2 to $22, with the stock showing significant momentum, gaining 16.8% in the past week.

The research firm’s decision follows Cabaletta’s presentation of data from three patients in the rese-cel substudy of its RESET-PV clinical trial at the European Society of Gene and Cell Therapy (ESGCT).

Jefferies noted that while rese-cel is not Cabaletta’s main program, the data is promising and provides proof of concept for rese-cel in autoimmune disease settings without preconditioning.

The firm believes these results could have broad impact and readthrough to Cabaletta’s core franchise, which includes programs targeting idiopathic inflammatory myopathies (IIM), systemic lupus erythematosus (SLE), systemic sclerosis (SSc), and generalized myasthenia gravis (gMG).

Jefferies indicated it anticipates major updates from Cabaletta’s Phase 1/2 basket study at the upcoming American College of Rheumatology (ACR) meeting, with coverage now transferred to Jefferies analyst Roger Song.

In other recent news, Cabaletta Bio has been the focus of several analyst updates following its recent financial activities. Guggenheim has lowered its price target for Cabaletta Bio to $15 from $25, maintaining a Buy rating. This adjustment follows the company’s second-quarter results and a $100 million capital raise, which extended its cash runway into the second half of 2026. Jefferies also adjusted its price target for Cabaletta Bio, reducing it to $14 from $28, while still maintaining a Buy rating. The firm cited the recent capital raise as the reason for this change, noting the company’s position as a leader in cell therapy for autoimmune diseases. Meanwhile, Cantor Fitzgerald reiterated an Overweight rating with a $15 price target, highlighting a recent medical case involving autologous CD19 CAR-T cell therapy. These developments reflect the ongoing interest in Cabaletta Bio’s financial strategies and its potential in the biotech sector.

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