Intel stock extends gains after report of possible U.S. government stake
Investing.com - Wells Fargo has lowered its price target on Fate Therapeutics (NASDAQ:FATE) to $2.50 from $4.00 while maintaining an Equal Weight rating following the company’s second-quarter earnings report. According to InvestingPro data, the stock appears undervalued at current levels, with analysts maintaining an average target between $2 and $12.
Fate Therapeutics reported a second-quarter net loss of $0.29 per share on Wednesday, beating the consensus estimate of $0.35 per share. The company ended the quarter with $248.9 million in cash, and InvestingPro analysis shows the company maintains a strong current ratio of 8.81, with cash reserves exceeding debt obligations.
The biotechnology firm has implemented a tactical operations plan that includes a 12% reduction in employee headcount and additional cost-saving measures across the organization. These changes are designed to extend the company’s financial runway through year-end 2027, compared to its previous projection of funding through the first half of 2027.
Wells Fargo adjusted its earnings per share estimates for Fate Therapeutics to losses of $1.11 for 2025 and $1.09 for 2026, compared to previous estimates of $1.29 and $1.33 losses, respectively.
The company’s new operational strategy prioritizes its iPSC-derived CAR-T programs and aims to enable the achievement of key clinical and collaboration milestones while maintaining sufficient funds to support operations beyond those milestones.
In other recent news, Fate Therapeutics presented significant clinical data for its FT819 therapy in lupus patients at the European Alliance of Associations for Rheumatology (EULAR) 2025 Congress in Barcelona. The data revealed that all three patients with severe lupus nephritis who received the treatment following a fludarabine-free conditioning regimen achieved Primary Efficacy Renal Response. Additionally, the first patient to reach a one-year follow-up continues in drug-free remission, showcasing promising results. Despite these developments, H.C. Wainwright and Needham have maintained their Neutral and hold ratings on the company’s stock, respectively. Meanwhile, BofA Securities lowered its price target for Fate Therapeutics to $2.20, maintaining a Neutral rating. The updated data included longer follow-up for three active lupus nephritis patients from the first dose cohort, all achieving at least a 10-point reduction in SLEDAI2K from baseline. An extrarenal lupus patient treated without conditioning chemotherapy also maintained a Low Lupus Disease Activity State at six months. The company’s ongoing Phase 1 trial continues to assess the safety and activity of FT819 in patients with moderate-to-severe systemic lupus erythematosus.
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