PepGen stock price target raised to $12 from $8 at H.C. Wainwright

Investing.com - H.C. Wainwright raised its price target on PepGen Inc. (NASDAQ:PEPG) to $12.00 from $8.00 on Thursday, while maintaining a Buy rating on the stock. The stock, currently trading at $2.66, has shown remarkable momentum with a 29.76% gain over the past week. According to InvestingPro data, analysts maintain a strong bullish consensus with price targets ranging from $1 to $10.

The price target increase follows PepGen’s report of 53.7% mean splicing correction at 15 mg/kg in its FREEDOM single dose study for DM1 patients, representing the highest level disclosed in DM1 patients to date. The safety profile at this top dose was generally favorable with mild or moderate adverse events that were transient and manageable. InvestingPro analysis shows the company maintains a strong financial position, with a current ratio of 4.74 and more cash than debt on its balance sheet.

H.C. Wainwright noted that no electrolyte disturbances, particularly hypomagnesemia, were observed in the study. One patient did experience a transient, reversible renal biomarker elevation that resolved without intervention, indicating potential ongoing safety considerations for the program.

The firm highlighted that the nearly 54% splicing correction sets a new benchmark and suggests that repeat dosing could yield clinically meaningful functional benefits. This provides an enlarged therapeutic window for PepGen to determine a safe and efficacious dose.

H.C. Wainwright outlined three scenarios for the upcoming first quarter 2026 MAD readout: a bull case with sustained 50% splicing correction driving the stock to $18-20, a base case with 30-35% correction stabilizing shares at $15-18, and a bear case with recurrent renal signals pulling the stock back to $1-2. Based on InvestingPro’s Fair Value analysis, the stock is currently trading near its fair value. Subscribers can access 12 additional ProTips and comprehensive financial metrics to better evaluate these potential scenarios.

In other recent news, PepGen Inc. reported significant advancements in its treatment for myotonic dystrophy type 1 (DM1). The company announced a mean splicing correction of 53.7% following a single 15 mg/kg dose in its Phase 1 FREEDOM-DM1 study, marking an unprecedented achievement in DM1 treatment. All patients in the 15 mg/kg cohort demonstrated improved splicing correction, highlighting the potential effectiveness of PepGen’s PGN-EDODM1 treatment. Additionally, PepGen has initiated an underwritten public offering of 31,250,000 shares of its common stock at $3.20 per share. This offering is expected to raise $100 million in gross proceeds, with the option for underwriters to purchase additional shares. The offering is set to close by late September 2025, pending customary closing conditions. Leerink Partners and Stifel are managing the offering as joint book-running managers. These developments underscore PepGen’s ongoing efforts in advancing its therapeutic pipeline and securing funding for future initiatives.

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