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Investing.com - JMP Securities maintained its Market Outperform rating and $29.00 price target on Prothena Corp (NASDAQ:PRTA) on Tuesday, following the company’s second quarter 2025 financial results. The stock, currently trading at $6.94, shows significant upside potential according to InvestingPro analysis, which indicates the stock is undervalued.
The research firm expressed confidence in PRX012’s potential in Alzheimer’s disease, highlighting its "best-in-class pharmacological profile" ahead of Phase 1 results expected this month.
JMP also noted value potential from Prothena’s partnered programs, which could generate more than $100 million in milestone payments in 2026.
Prothena reported it ended the second quarter with $372 million in cash and maintained its guidance for year-end 2025 cash of approximately $300 million.
The company reiterated timelines for its PRX012 Alzheimer’s disease treatment results, which are expected to be released in August. With revenue growth of 54.55% in the last twelve months, Prothena demonstrates strong momentum in its development programs.
In other recent news, Prothena Corporation has announced a significant restructuring plan following the discontinuation of its birtamimab Phase 3 trial. This decision led to a 63% reduction in the workforce to cut operating costs while continuing to support existing programs and business development activities. The company has revised its financial guidance, now expecting a net cash burn of $170 to $178 million by 2025, with a projected year-end cash position of approximately $298 million. Meanwhile, positive developments have emerged as Prothena’s partner, Roche, decided to advance prasinezumab into Phase 3 trials for early-stage Parkinson’s disease, based on promising Phase 2b results.
BofA Securities downgraded Prothena’s stock from Neutral to Underperform and slashed its price target from $22 to $4, following the failure of birtamimab in a crucial trial. The analysts removed birtamimab from their valuation model, citing its previous significant impact on the price target. Cantor Fitzgerald, on the other hand, maintained a Neutral rating on Prothena after the restructuring announcement. These developments indicate a period of transition for Prothena as it navigates recent challenges and opportunities.
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