Brookline Capital Markets sets price target, rating on iBio shares

Published 22/07/2024, 19:02
Brookline Capital Markets sets price target, rating on iBio shares

On Monday, Brookline Capital Markets began coverage on shares of iBio, Inc. (NYSE: IBIO), a preclinical-stage biotechnology firm. The company was given a Buy rating with a price target set at $3.60. iBio specializes in using artificial intelligence (AI) and machine learning to develop precision antibodies. Their focus is on reducing development risks and optimizing monoclonal antibodies.

The analyst from Brookline Capital Markets views the shares as a call option on the potential future monetization of iBio's pipeline through licensing agreements or asset sales. The company is actively developing a range of preclinical assets. Among them is IBIO-101, a second-generation antiCD25 monoclonal antibody (mAb) designed to deplete immunosuppressive Treg cells and inhibit tumor growth.

Another notable asset in iBio's pipeline is an anti-CCR8 antibody, which targets Tregs within the tumor environment without affecting CCR4. Moreover, iBio is working on a cardiometabolic program that includes an anti-myostatin antibody. This antibody aims to limit muscle loss and other morbidities associated with weight loss.

The bullish stance on iBio by Brookline Capital Markets is based on the company's innovative approach to antibody development. The use of AI and machine learning in their processes is seen as a strategic advantage in the competitive biotech industry. The development of their preclinical assets is closely watched by investors interested in the company's future prospects and potential for partnerships or sales.

In other recent news, Chardan Capital Markets initiated coverage of iBio, Inc., assigning a Buy rating and emphasizing the company's AI-guided drug discovery platform. The platform is expected to generate advanced engineered antibodies for challenging drug targets, reducing risks in later development stages.

iBio has made significant strides towards antibody drug discovery and development, including the acquisition of RubrYc Therapeutics, Inc. and a partnership with AstralBio. The acquisition allowed iBio to integrate an AI-driven drug discovery platform into its operations.

The partnership with AstralBio is focused on discovering, engineering, and developing novel antibodies for obesity and other cardiometabolic conditions. Still, Chardan notes that iBio may require additional capital by the first half of 2025, ahead of any human clinical data availability.

These recent developments underscore the core technology of iBio's platform, which merges precision medicine biology with machine learning and artificial intelligence, contributing to Chardan's optimistic outlook for the company.

InvestingPro Insights

As iBio, Inc. (NYSE: IBIO) garners a Buy rating from Brookline Capital Markets, it's interesting to note that the company's stock price has been known to move inversely to market trends, which could be a point of consideration for investors looking for counter-cyclical opportunities. Furthermore, despite the innovative strides in antibody development, analysts are not expecting iBio to be profitable this year, reflecting a cautious outlook on immediate financial performance.

InvestingPro data underscores the financial challenges, with the company posting a mere $0.05 million in revenue and gross profit for the last twelve months as of Q3 2024, coupled with a significant operating income loss of $18.19 million. This reflects a high operating income margin loss, indicating substantial costs relative to the company's revenue. Moreover, the stock has experienced a substantial 80.45% decline over the last year, yet interestingly, it has also shown a strong return of 20.79% over the last three months and an impressive 100.93% over the last six months.

For those interested in delving deeper into the financials and future projections for iBio, more InvestingPro Tips can be found on the platform. There are a total of 12 additional tips available, which could provide valuable insights for investors considering this biotech player. To access these insights and the full suite of analytical tools, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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