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On Friday, H.C. Wainwright adjusted its price target for Repare Therapeutics (NASDAQ:RPTX) shares, lowering it from $10.00 to $5.00. Despite the reduction, the firm maintained a Buy rating on the stock. The adjustment comes as the stock has declined over 80% in the past year, currently trading at $1.19. According to InvestingPro analysis, RPTX appears undervalued at current levels. Analyst Robert Burns provided a detailed commentary on the company’s financials and future prospects.
Repare Therapeutics reported a diluted net loss of $2.00 per share for the year 2024, which matched H.C. Wainwright’s previous forecast of a $2.04 per share net loss. The company’s research and development (R&D) and selling, general, and administrative (SG&A) expenses came in at $115.9 million and $29.7 million, respectively. These figures were slightly lower than the firm’s estimates of $121.6 million for R&D and $30.5 million for SG&A expenses.
Looking ahead, H.C. Wainwright now projects a full-year net loss of $2.11 per share for Repare in 2025, an improvement from the prior estimate of a $3.25 per share net loss. The firm believes that Repare’s balance sheet, with $152.8 million in cash and cash equivalents at the end of 2024, should provide the company with an operational runway into late 2027. This forecasted runway is expected to cover numerous data catalysts that could potentially impact the company’s financial performance.
In his commentary, Burns highlighted that the adjustments made to their financial model led to the decision to reiterate the Buy rating, while also necessitating the reduction in the price target. The new 12-month price target of $5 reflects these updated projections and the current assessment of Repare’s financial health and outlook.
In other recent news, Repare Therapeutics has reported its financial results for the fourth quarter and full year 2024, showing a net loss of $28.7 million for the quarter and $84.7 million for the year. The company has also announced a significant workforce reduction of approximately 75% to extend its financial runway, aiming to fund operations into late 2027 with $152.8 million in cash and equivalents. Repare is focusing on several clinical trials, with key results expected in 2025, including the POLAR, LIONS, and MYTHIC trials. Stifel has adjusted its outlook on Repare, reducing the price target to $3 while maintaining a Buy rating due to the company’s financial stability and promising early-stage assets. Meanwhile, Bloom Burton downgraded Repare’s stock from Buy to Hold, citing the lack of human data for its early-stage drugs RP-3476 and RP-1664. Despite challenges, Repare’s MYTHIC trial showed promising results for a drug combination in treating endometrial and platinum-resistant ovarian cancers, with plans for a Phase 3 trial in endometrial cancer. Repare has received positive regulatory feedback for its MYTHIC trial, indicating potential for the drug combination to become a new standard of care.
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