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Investing.com - Stifel has reduced its price target on X4 Pharmaceuticals (NASDAQ:XFOR) to $9.00 from $30.00 while maintaining a Buy rating on the stock. Currently trading at $4.12, the stock sits well below its 52-week high of $26.83, though InvestingPro data shows strong returns over the past three months.
The significant price target reduction follows major changes at X4 Pharmaceuticals over the past few weeks, including a complete overhaul of the senior leadership team with a new CEO, CFO, and President, along with board-level changes. Despite these changes, InvestingPro analysis indicates the company maintains a FAIR overall financial health score, with particularly strong relative value metrics.
The company has also completed an $85 million PIPE (Private Investment in Public Equity) recapitalization, providing runway to continue executing its Phase 3 4WARD trial and gain relief from debt facility covenants.
Stifel notes that these changes increase the likelihood that mavorixafor, X4’s drug candidate, will have the opportunity to fulfill its potential in what the firm considers a multi-billion-dollar addressable market for chronic neutropenia.
Despite acknowledging considerable near-term uncertainty in revised estimates regarding 4WARD enrollment timelines, potential operating expense rationalization, and additional funding requirements, Stifel believes the risk/reward profile remains favorable for X4 Pharmaceuticals.
In other recent news, X4 Pharmaceuticals has been active with several significant developments. The company successfully closed an upsized $85 million private placement, surpassing its initial $60 million offering to accommodate an investor with pre-existing rights. This move highlights X4 Pharmaceuticals’ ability to attract substantial investment interest. Additionally, the firm has undergone changes in its leadership and board of directors, appointing new members with turnaround experience. These appointments include Michael Wyzga as chair of the audit committee and Francoise de Craecker and Gary Bridger as members.
Meanwhile, H.C. Wainwright has adjusted its price target for X4 Pharmaceuticals, lowering it from $7.00 to $3.50, although maintaining a Buy rating. This adjustment follows the company’s announcements regarding leadership changes and the successful private placement. The financing, led by Coastlands Capital and involving Bain Capital Life Sciences and New Enterprise Associates, indicates strong investor confidence in X4 Pharmaceuticals’ future. The recent board resignations of David McGirr and R. Keith Woods were noted, with the company clarifying that these were not due to disagreements over operations or policies.
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