Stifel cuts Vor Biopharma stock target to $5, maintains Buy rating

Published 21/03/2025, 13:34
Stifel cuts Vor Biopharma stock target to $5, maintains Buy rating

On Friday, Stifel analysts adjusted their outlook on Vor Biopharma , Inc. (NASDAQ:VOR), reducing the price target to $5 from the previous $12 while continuing to endorse the stock with a Buy rating. Currently trading at $0.85 with a market cap of $106 million, the company holds more cash than debt on its balance sheet. The revision follows Vor Biopharma’s recent private investment in public equity (PIPE) financing, which addressed immediate financial concerns and allows the company to focus on upcoming milestones expected in fiscal year 2025.According to InvestingPro, Vor Biopharma’s analyst consensus remains strongly bullish, with targets ranging from $5 to $18. Subscribers can access 8 more exclusive ProTips and comprehensive financial analysis.

The financial analysts at Stifel highlighted several key catalysts for Vor Biopharma in the coming year. These include an anticipated update on VCAR33 dose-escalation data from the VBP301 trial in the first half of 2025, as well as updated trem-cel and Mylotarg data from the VBP101 trial in the second half of 2025. Additionally, the initiation of the first trem-cel/VCAR33 Treatment System trial is expected in the latter part of the year. The company’s strong current ratio of 4.69 indicates ample liquidity to fund these initiatives.

Vor Biopharma’s management has expressed confidence in the progress of patient enrollment in both the VBP101 and VBP301 trials. They have also shown optimism regarding the preliminary safety and efficacy profile of VCAR33 in both the minimal residual disease positive (MRD+) and relapsed cohorts of the VBP301 trial. This positive outlook is believed to be a driving factor behind the decision to begin the Treatment System trial in the second half of 2025, which aims to maximize the value of these technologies.

The new price target of $5 set by Stifel reflects the dilutive impact of the recent PIPE transaction. Additionally, the revised target accounts for changes in long-term financing assumptions for Vor Biopharma. Despite the reduced price target, Stifel’s analysts maintain a positive stance on the stock, based on the company’s strategic focus and potential growth drivers in the near future.

In other recent news, Vor Biopharma has adjusted the exercise prices for certain stock options to $1.34 per share, impacting approximately 6.76 million shares. This strategic move, approved by the company’s board of directors, aims to retain and motivate employees by aligning their interests with those of the company without additional equity grants. Additionally, Vor Biopharma has secured $55.6 million through a private investment in public equity (PIPE) deal, with the participation of new investor Reid Hoffman. The funds are expected to support the company’s clinical and preclinical development efforts and extend its cash runway through 2025. Vor Biopharma also announced plans to release updated clinical data from its VBP301 and VBP101 trials next year. Erez Kalir has been appointed to the company’s Board of Directors, bringing his expertise in investing and strategic growth. This appointment follows a recent private investment and aligns with Vor Biopharma’s efforts to strengthen its leadership as it advances its clinical programs. Furthermore, Wedbush analyst David Nierengarten maintains an outperform rating on Vor Biopharma, citing potential positive impacts from upcoming clinical data releases.

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