Bullish indicating open at $55-$60, IPO prices at $37
On Wednesday, Truist Securities expressed continued confidence in Sangamo BioSciences (NASDAQ:SGMO), maintaining a Buy rating on the company’s stock, which currently trades at $0.84. Analysts at Truist highlighted Sangamo’s progress in developing treatments for chronic neuropathic pain and prion disease, with initial results expected in the fourth quarter of 2026. The stock has faced significant pressure, dropping 17% year-to-date, according to InvestingPro data, which shows additional indicators suggesting the stock may be undervalued relative to its Fair Value.
Sangamo’s potential Biologics License Application (BLA) filing in the second half of 2025 was acknowledged, though concerns regarding the company’s near-term cash position were noted. These concerns are reflected in InvestingPro’s Financial Health Score of 1.61, labeled as ’WEAK’. Despite these concerns, Truist sees significant interest from Big Pharma in Sangamo’s gene therapy platform, evidenced by two existing capsid delivery agreements. Additionally, Sangamo is reportedly in advanced talks with another potential partner for its STAC-BBB program.
The company’s pursuit of a partnership for its Fabry disease program was also mentioned as a critical factor that could substantially extend Sangamo’s financial runway beyond 2026. Truist updated its model to include the fourth quarter of 2024 and the expected ramp-up of the Fabry disease program.
In light of recent market volatility and the lower share price of Sangamo, Truist has decided to remove its price target for the company’s stock while reiterating the Buy rating. The move reflects a cautious but optimistic outlook, as the firm awaits further developments regarding Sangamo’s partnerships and financial strategy.
In other recent news, Sangamo Therapeutics reported its earnings for Q4 2024, with an earnings per share (EPS) of -0.11, slightly missing the forecast of -0.10. Revenue came in at $7.55 million, which was below the expected $10.32 million. Despite these financial challenges, the company has made significant strides in reducing operating expenses by nearly 50% year-over-year. Sangamo has also raised over $100 million in 2024, bolstering its financial stability. Jefferies analyst Maury Raycroft has lowered the price target for Sangamo to $2.00 from $3.00, while maintaining a Buy rating on the stock. The company is actively engaged in discussions for a business development partnership related to its Fabry disease program and anticipates finalizing a third STAC-BBB deal soon. These developments are part of Sangamo’s strategy to extend its cash runway until the end of 2026 to advance its neuro pipeline.
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