JMP reiterates Market Outperform rating on Larimar stock ahead of data

Investing.com - JMP Securities maintained its Market Outperform rating and $18.00 price target on Larimar Therapeutics (NASDAQ:LRMR) stock on Tuesday. According to InvestingPro data, analysts are highly bullish on the stock, with price targets ranging from $10 to $33, suggesting significant upside potential from current levels.

The firm noted that Larimar’s upcoming data readout is not a "hit or miss" scenario, as any major safety issues would have already emerged, and meaningful skin frataxin increases were observed at lower doses in previous studies. The company’s strong financial health position, with more cash than debt and a current ratio of 5.46, provides additional runway for its clinical development programs.

JMP indicated that the forthcoming data will address key investor questions and should provide greater confidence in the approvability of nomlabofusp, Larimar’s treatment for Friedreich’s ataxia (FA).

According to JMP, the FDA has informed Larimar that the company has "pretty much done all the work" needed for approval, with remaining requirements being the collection of safety follow-up data expected early next year and the initiation of a confirmatory Phase 3 trial.

JMP believes Larimar’s current enterprise value of approximately $130 million significantly undervalues nomlabofusp’s potential, particularly as it addresses the root cause of FA, while competing treatment Skyclarys is projected to reach approximately $500 million in worldwide sales by 2025 despite offering modest benefits. InvestingPro analysis reveals 8 additional key insights about LRMR’s financial position and market performance, available to subscribers.

In other recent news, Larimar Therapeutics has completed a public offering, raising $69 million by selling 21,562,500 shares of common stock at $3.20 per share. This move has brought the company’s cash position to an estimated $185 million, projected to support operations into the fourth quarter of 2026. Following this equity financing, analysts have adjusted their price targets for Larimar. JMP Securities lowered its price target to $18.00 from $22.00, citing the dilution effect, though it maintained a Market Outperform rating. Similarly, Jones Trading decreased its price target to $10.00 from $12.00, also highlighting the impact of dilution but maintaining a Buy rating. Meanwhile, Truist Securities and Guggenheim have both reiterated their Buy ratings, with Truist setting a price target of $18.00 and Guggenheim at $26.00. Larimar is preparing to release new data in September from its open-label extension study on nomlabofusp, which is expected to provide insights into safety and clinical outcomes.

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