Sana Biotech stock rating upgraded to Market Outperform

Published 18/03/2025, 14:12
Sana Biotech stock rating upgraded to Market Outperform

On Tuesday, Sana Biotechnology shares received an upgrade from Citizens JMP, shifting the company’s stock rating from Market Perform to Market Outperform. The biotechnology firm, traded under (NASDAQ:SANA), also saw its price target set at $5.00 by the research firm. According to InvestingPro data, the stock has shown strong momentum with a 70% gain year-to-date, despite trading below its Fair Value. InvestingPro analysis reveals the stock currently maintains a "Fair" overall financial health score of 2.27 out of 5.

Citizens JMP’s decision to upgrade Sana Biotechnology’s stock comes after the company’s recent announcement of its fourth-quarter 2024 results and corporate updates. Among the updates, Sana revealed extended findings from the Upsala Investigator-Sponsored Trial (IST), which demonstrated a three-month viability of islet cells. InvestingPro subscribers can access 8 additional exclusive tips about SANA, including insights about its cash position and market performance patterns.

The positive results from the modified pancreatic islet cell IST program, which supports the use of Sana’s HIP platform in treating Type 1 Diabetes (T1D), were a significant factor in the analyst’s optimistic view. The firm also anticipates forthcoming data in 2025 from Sana’s SC291 program, aimed at treating autoimmune diseases (AID).

In addition to the encouraging trial outcomes, Sana Biotechnology’s financial position was highlighted as a reason for the upgrade. The company reported having a cash reserve of $152.5 million, which Citizens JMP suggests positions the stock favorably. The analyst believes that the current valuation of Sana’s shares does not fully reflect the potential of the company, especially after the stock experienced a pullback following the initial release of the T1D data.

The upgrade to Market Outperform indicates a confidence in Sana Biotechnology’s growth prospects and its ability to outperform the market, based on the analysis of cash per share and the value of the company’s platform. The new price target represents Citizens JMP’s expectation for the stock’s future performance.

In other recent news, Sana Biotechnology reported its fourth-quarter and full-year 2024 earnings, revealing a narrower-than-expected loss. The company posted an adjusted loss of $0.23 per share, which was better than analyst projections of a $0.24 per share loss. Additionally, Sana ended the quarter with a cash position of $152.5 million, which is expected to support operations into 2026. Research and development expenses decreased to $47.0 million from $63.0 million in the same quarter last year. The company also shared positive preliminary 12-week clinical results from its ongoing trial for type 1 diabetes treatment. This trial evaluates hypoimmune-modified pancreatic islet cells transplanted without immunosuppression, showing effective insulin secretion and stable C-peptide production. H.C. Wainwright maintained a Buy rating on Sana, with an $11.00 price target, following these promising clinical updates. Sana is also progressing with clinical trials for its SC291 and SC262 therapies, with data expected in 2025, and plans to file new drug applications in the coming years.

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

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