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Investing.com - Truist Securities lowered its price target on Mersana (NASDAQ:MRSN) to $36.00 from $250.00 on Thursday, while maintaining a Buy rating on the biotechnology company’s stock. The stock, currently trading at $7.26, has seen a dramatic 78% decline over the past year. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics.
The significant price target reduction comes as Truist anticipates a "defining event" for Mersana’s Emi-Le treatment in the second half of 2025, when the company is expected to provide an important data update.
Truist remains optimistic that with new side-effect management protocols, Emi-Le can achieve better exposure and responses at the higher dose level, referred to as "Dose B" in their analysis.
The firm expressed hope that the upcoming data could potentially catalyze a partnership or licensing agreement with a larger biopharmaceutical company, which Truist believes would provide important validation and the capital needed to "fully explore Emi-Le’s potential."
The price target adjustment follows Mersana’s second-quarter earnings report and subsequent management discussions, with Truist noting that its updated financial model drove the substantial reduction in its target valuation.
In other recent news, Mersana Therapeutics reported its second-quarter 2025 earnings, revealing a substantial miss in both earnings per share (EPS) and revenue compared to analyst forecasts. The company posted an EPS of -4.87, significantly below the anticipated -0.16, and reported revenue of $3.06 million, which was 51.04% less than the expected $6.25 million. Despite these results, Mersana’s lead program, Emi-Le, continues to show progress, with over 45 patients enrolled in its triple-negative breast cancer dose expansion cohorts. The company anticipates reporting clinically meaningful data from this program in the latter half of 2025. Additionally, Guggenheim maintained its Buy rating on Mersana stock but lowered its price target from $125 to $30 following the earnings announcement. Meanwhile, BTIG increased its price target for Mersana from $6 to $17, also maintaining a Buy rating. These developments reflect differing analyst perspectives on the company’s potential despite its recent financial performance.
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