Bullish indicating open at $55-$60, IPO prices at $37
On Tuesday, Jefferies analyst Maury Raycroft adjusted the price target for Sangamo BioSciences (NASDAQ:SGMO) to $2.00, a decrease from the previous target of $3.00. Currently trading at $1.01, the stock sits significantly below its 52-week high of $3.18. Despite the lowered target, the firm maintains a Buy rating on the company’s shares. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics, though investors should note the company’s high price volatility. Raycroft’s commentary highlighted Sangamo’s fourth-quarter update, which indicated ongoing discussions for a business development partnership related to their Fabry disease program.
The company is on track to present one-year eGFR data by mid-2025, with plans to subsequently file for accelerated approval in the second half of the year. Additionally, Sangamo anticipates finalizing a third STAC-BBB deal in the upcoming weeks, which could provide a cash buffer for the company. This is particularly crucial as InvestingPro data shows the company is rapidly burning through cash, with a significant revenue decline of 74% in the last twelve months.
Sangamo aims to extend its cash runway until the end of 2026 to advance its wholly-owned neuro pipeline, including iSFN and prion programs. The company expects to release data from both programs in the fourth quarter of 2026. This strategic planning is significant as it marks an extension of Sangamo’s cash runway into mid-second quarter of 2025, an improvement from the previously anticipated first quarter of 2025.
The company’s current financial position includes $42 million in cash, which is expected to support its operations and research efforts until the targeted date. The new price target of $2.00 reflects the analyst’s updated assessment of Sangamo’s financial outlook and ongoing projects.
In other recent news, Sangamo Therapeutics reported its earnings for the fourth quarter of 2024, revealing an earnings per share (EPS) of -0.11, slightly missing the expected -0.10. Revenue for the quarter was $7.55 million, falling short of the anticipated $10.32 million, highlighting ongoing revenue challenges. Despite these financial results, Sangamo has made progress in reducing operating expenses by nearly 50% year-over-year. The company also secured an FDA pathway for accelerated approval in Fabry disease, a significant regulatory development. In 2024, Sangamo raised over $100 million through various funding avenues, bolstering its financial stability. The company’s strategic focus includes advancing its neurology pipeline, with plans to launch a clinical trial for SC503 in mid-2025. Analysts from firms like H.C. Wainwright and Wells Fargo (NYSE:WFC) have shown interest in Sangamo’s ongoing Fabry partnership negotiations and the potential impact of SC503 in the chronic pain landscape. These developments mark important steps in Sangamo’s operational strategies and future product pipelines.
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