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On Wednesday, Piper Sandler analyst Edward A. Tenthoff adjusted the price target for iTeos Therapeutics (NASDAQ:ITOS) shares, reducing it to $12.00 from the previous $16.00. Despite the change, the firm maintained an Overweight rating on the stock. According to InvestingPro data, analyst targets for ITOS currently range from $8 to $47, reflecting diverse market opinions. The stock appears undervalued based on InvestingPro’s Fair Value analysis. The adjustment follows iTeos Therapeutics’ announcement regarding the discontinuation of the belrestotug program, including the Phase III Lung-301 trial, after belrestotug and dostarlimab failed to meet the pre-specified progression-free survival (PFS) endpoint in the GALAXIES Lung-201 study and demonstrated insufficient overall response rate (ORR) in the H&N-202 study.
iTeos Therapeutics, in collaboration with GSK, has decided to halt the belrestotug program and is currently considering strategic alternatives. In light of these developments, Tenthoff’s revised price target reflects the removal of belrestotug’s value from the company’s valuation.
Despite the setback with belrestotug, iTeos Therapeutics continues its research and development efforts with other projects. The company is conducting the Phase I/Ib APT-008 study of the ENT1 inhibitor EOS-984, with results expected in the second half of 2025. Additionally, iTeos has recently initiated the Phase I/Ib TRM-010 study of the TREM2 antibody EOS-215 as monotherapy and in combination with Keytruda and other checkpoint inhibitors (CPIs) in up to 94 patients with advanced solid tumors.
The analyst also noted that, even after today’s price target reduction, iTeos Therapeutics’ stock is trading below its first-quarter 2025 cash position of $624 million, which amounts to approximately $14.41 per share. This financial standing underpins Piper Sandler’s continued Overweight rating on the company’s shares. InvestingPro analysis reveals the company’s strong liquidity position with a current ratio of 14.13, and its shares have gained an impressive 21.89% over the past week. Subscribers to InvestingPro can access 7 additional key insights about ITOS’s financial health and market performance.
Tenthoff commented on the rationale behind the maintained rating and the new price target, stating, "We remain Overweight, however are cutting our price target to $12 from $16 by removing belrestotug value." This statement encapsulates the firm’s position on iTeos Therapeutics following the recent developments in its clinical programs. With a market capitalization of $300.45 million and a beta of 1.39, ITOS presents a complex investment case that InvestingPro subscribers can analyze using comprehensive financial metrics and expert insights.
In other recent news, iTeos Therapeutics reported a narrower-than-expected loss for the first quarter of 2025, with a net loss of $34.6 million, or $0.80 per share, outperforming analyst estimates of a $0.93 per share loss. The company did not report any revenue for the quarter, focusing instead on advancing its pipeline of immuno-oncology therapeutics. Research and development expenses decreased to $29.0 million, attributed to the phasing of belrestotug studies and the discontinuation of the inupadenant program. iTeos ended the quarter with a cash position of $624.3 million, expected to provide financial runway through 2027.
In a strategic move, iTeos and its partner GSK have decided to terminate their belrestotug development program following disappointing results from the Phase 2 GALAXIES Lung-201 study. The study failed to show clinically meaningful improvements in progression-free survival for patients with PD-L1 high non-small cell lung cancer. Despite the setback, iTeos has initiated a strategic review to maximize shareholder value, with TD Cowen advising on the process.
Additionally, JPMorgan downgraded iTeos Therapeutics’ stock from Overweight to Neutral, reducing the price target to $8.00. The downgrade follows the announcement of the termination of the belrestotug program. iTeos is now focusing on its early-stage pipeline, including promising programs like EOS-984 and EOS-215, although they are too early in development for evaluation. The company remains committed to exploring opportunities that could unlock the value of its assets.
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