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Investing.com - Leerink Partners has lowered the price target on Arcturus Therapeutics (NASDAQ:ARCT) stock to $17.00 from $54.00 while maintaining an Outperform rating. The stock, currently trading at $11.54, has shown significant volatility with a 63% surge over the past six months, according to InvestingPro data.
The significant reduction follows what Leerink described as "underwhelming" data from the ARCT-032 clinical trial in cystic fibrosis, along with several other developments that have impacted the company’s near-term outlook.
Arcturus announced it will add a non-registrational 12-week preliminary efficacy study for ARCT-032 expected to begin next year, while also facing delays in the approval decision for Kostaive in the UK and additional requirements from the FDA before BLA submission in the US.
The research firm also noted a lack of commercialization plans in the EU for Kostaive and has pushed back potential development milestones from the CSL collaboration on respiratory vaccines.
Leerink’s revised $17 price target reflects approximately $7 in cash value, $6 for the CSL collaboration, $3 for OTC deficiency programs, and $1 for cystic fibrosis programs, with the firm maintaining its Outperform rating despite the substantial target reduction. Based on comprehensive Fair Value analysis from InvestingPro, the stock currently appears undervalued, with 8 analysts recently revising their earnings expectations upward for the upcoming period.
In other recent news, Arcturus Therapeutics announced interim results from its Phase 2 clinical trial of ARCT-032, an inhaled mRNA therapy for cystic fibrosis. The treatment was generally safe and well-tolerated, with early signs of efficacy. Four out of six participants showed notable reductions in mucus plugs and mucus volume. Despite these findings, the trial data did not demonstrate a significant improvement in lung function, leading Laidlaw to lower its price target for the company from $79.00 to $68.00, though it maintained a Buy rating. Meanwhile, H.C. Wainwright initiated coverage on Arcturus with a Buy rating and a $60.00 price target, citing the company’s innovative mRNA platform. Additionally, Wells Fargo adjusted its price target to $42.00 from $45.00, following Arcturus’ second-quarter 2025 financial results, which revealed a net loss per share of ($0.34), surpassing the consensus estimate of ($0.89). These developments reflect the mixed investor sentiment surrounding Arcturus’ recent performance and future prospects.
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