Gold bars to be exempt from tariffs, White House clarifies
Investing.com - Wells Fargo (NYSE:WFC) has reduced its price target on Rapt Therapeutics (NASDAQ:RAPT) stock to $38.00 from $51.00 while maintaining an Overweight rating following the company’s second-quarter earnings results. The stock, currently trading at $10.25, sits well below its 52-week high of $26.56, though InvestingPro analysis suggests the company is slightly undervalued at current levels.
Rapt Therapeutics reported a net loss per share of ($0.65) for the quarter, better than the consensus estimate of ($0.74). The company ended the period with a cash position of $168.9 million, which it previously indicated would extend through Phase 2b food allergy data expected in the first half of 2027. InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 21.11, though it’s worth noting the company is quickly burning through its cash reserves.
The price target reduction reflects updated model assumptions, including the removal of Rapt’s oncology program from Wells Fargo’s valuation model. The firm has adjusted its earnings per share estimates for 2025 and 2026 to ($2.80) and ($3.75), respectively, compared to previous estimates of ($2.18) and ($2.89).
Rapt remains on track to initiate its Phase 2b study in food allergy later this year, which will evaluate RPT904 administered every 8 weeks or every 12 weeks versus placebo in adolescent and adult food allergy patients. The primary endpoint will be prespecified threshold by oral food challenge at Week 24.
The company and its partner Jemincare also expect to report topline data from Phase 2 studies of RPT904 in chronic spontaneous urticaria (CSU) and asthma in the second half of 2025, with plans to initiate a Phase 2 or Phase 3 CSU study in the second half of 2026. For deeper insights into RAPT’s financial health and growth prospects, including 8 additional key ProTips and comprehensive valuation metrics, check out the full research report available on InvestingPro.
In other recent news, Rapt Therapeutics has seen significant developments. H.C. Wainwright has raised its price target for Rapt Therapeutics to $27.00, following Merck (NSE:PROR)’s announcement of acquiring Verona Pharma (NASDAQ:VRNA) for $10 billion. This adjustment reflects optimism around Rapt’s strategic positioning in the biopharmaceutical market. Additionally, Clear Street has significantly increased its price target on Rapt Therapeutics to $24.00, emphasizing the potential of the company’s RPT904 antibody. This antibody is being advanced for food allergy treatment, with Phase 2b trials set to begin in the latter half of 2025. Furthermore, JPMorgan has upgraded Rapt Therapeutics’ stock rating from Underweight to Neutral, setting a price target of $14.00. This upgrade is based on the perceived de-risked mechanism of RPT904, which shows promise in the Food Allergy and Chronic Spontaneous Urticaria markets. On the corporate front, Rapt Therapeutics has expanded its Board of Directors by appointing Scott Braunstein, M.D., and Ashley Dombkowski, Ph.D., bringing the total number of directors to seven. Both new directors will serve in key committee roles, contributing to the company’s governance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.