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Investing.com - JPMorgan has upgraded Rapt Therapeutics (NASDAQ:RAPT) from Underweight to Neutral and established a price target of $14.00 with a December 2026 time horizon. The stock, currently trading at $11.53, has seen a significant 17% decline over the past week, though InvestingPro analysis indicates the company is currently undervalued.
The upgrade reflects JPMorgan’s assessment that the company’s lead drug candidate RPT904 has a de-risked mechanism with significant potential in Food Allergy (FA) and Chronic Spontaneous Urticaria (CSU) markets. According to InvestingPro data, RAPT maintains a strong financial position with more cash than debt and a healthy current ratio of 21.11, providing runway for its drug development programs.
JPMorgan noted that Food Allergy represents a massive market opportunity where even capturing incremental market share could result in a blockbuster opportunity for Rapt Therapeutics.
The firm also views Chronic Spontaneous Urticaria as a sizable market opportunity that could independently drive upside for Rapt shares.
Despite the positive outlook on these opportunities, JPMorgan indicated that RPT904 remains "somewhat under-the-radar" following previous pipeline setbacks, and may require company-sponsored data to increase visibility of the asset.
In other recent news, Rapt Therapeutics has been the focus of significant developments. H.C. Wainwright raised its price target for the company to $27 from $6, maintaining a Buy rating. This adjustment follows Merck (NSE:PROR)’s announcement of acquiring Verona Pharma (NASDAQ:VRNA) for $10 billion. Additionally, Rapt Therapeutics has expanded its Board of Directors, appointing Scott Braunstein, M.D., and Ashley Dombkowski, Ph.D. Both will serve on key committees, with Dr. Braunstein joining the Audit Committee and Dr. Dombkowski joining the Nominating and Corporate Governance Committee. The company also announced a 1-for-8 reverse stock split, set to take effect on June 16, 2025. Clear Street analysts initiated coverage of Rapt Therapeutics with a Buy rating and a price target of $3. They expressed confidence in the potential of RPT904, an anti-IgE antibody for food allergy and chronic spontaneous urticaria. Despite a 76% stock decline over the past year, analysts see a substantial opportunity due to the company’s cash reserves.
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