Maxim Group sets Cero Therapeutics stock with $3 target

Monday, Maxim Group initiated coverage on Cero Therapeutics (NASDAQ:CERO) with a Buy rating and set a price target of $3.00, representing significant upside potential from the current price of $0.60. According to InvestingPro data, the company has a market capitalization of just $3.15 million, making it a micro-cap biotech player. The firm’s analyst highlighted the potential of Cero’s innovative chimeric engulfment receptor T cells (CER-T) technology for treating both liquid and solid tumors. The lead program, CER-1236, is notable for incorporating the phagocytic receptor TIM-4, T-cell stimulatory domains, and the innate stimulator TLR2.

The analyst noted that CER-1236 cells can induce phagocytosis, similar to macrophage action, as well as T-cell killing upon recognizing TIM-4-L on cancer cells. This dual action leverages the immune system’s natural functions for eliminating distressed or apoptotic cells, potentially offering a more controlled and precise targeting mechanism with limited off-target effects. This could be particularly advantageous in situations where traditional CAR-T therapies have encountered obstacles.

Cero Therapeutics is initially focusing its CER-1236 program on acute myeloid leukemia (AML), with plans to dose the first patient(s) soon in a Phase 1 trial. Additionally, an Investigational New Drug (IND) application has been cleared for a Phase 1 trial in advanced solid tumors, which will commence following the AML trial.

The analyst believes that the company’s targeting of challenging AML settings, such as TP53 mutations, relapsed/refractory cases, and minimal residual disease, could allow for a smaller number of positive responses to provide a definitive proof of concept. InvestingPro analysis indicates the company’s overall financial health score is weak, with a current ratio of 0.73, suggesting potential near-term liquidity challenges that investors should monitor. The early phases of this technology are compared to the initial stages of CD19 CARs, suggesting significant potential for Cero’s approach.

The preclinical data for CER-1236 has been described as compelling, setting the stage for Cero to demonstrate success in clinical trials. Key to the company’s near-term prospects will be the initial AML data, which is expected to be released in the third quarter of 2025. Following a recent equity financing round that raised $8 million, Cero Therapeutics is expected to have sufficient funds to sustain operations through this upcoming key event. While the company holds more cash than debt on its balance sheet, InvestingPro data shows that short-term obligations exceed liquid assets, highlighting the importance of successful clinical trial outcomes for the company’s future.

In other recent news, CERo Therapeutics Holdings, Inc. has initiated a Phase 1 clinical trial for its novel therapy, CER-1236, aimed at treating acute myeloid leukemia (AML). The trial, in collaboration with Sarah Cannon Research Institute, is underway with patient enrollment progressing and the first dosing expected soon. Additionally, CERo Therapeutics has secured $8 million in funding through a convertible preferred stock transaction to support its T cell therapeutic programs and clinical trial site expansions. This capital is set to aid the activation of a new site at MD Anderson Cancer Center and expedite other clinical trial launches. Furthermore, CERo Therapeutics has regained compliance with Nasdaq’s minimum stockholders’ equity requirement after a series of financial maneuvers. Boral (OTC:BOALY) Capital has initiated coverage on CERo Therapeutics with a Buy rating and a price target of $11.00, citing the company’s innovative T cell engineering platform as a key factor. The firm’s outlook is buoyed by the anticipation of a significant pipeline catalyst expected in 2025. CERo Therapeutics continues to focus on its proprietary technology, which aims to expand the application of its Chimeric Engulfment Receptor T cells (CER-T) beyond hematological malignancies to solid tumors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.