On Tuesday, H.C. Wainwright adjusted its outlook on Caribou Biosciences Inc. (NASDAQ:CRBU), increasing the price target to $24 from the previous $23 while maintaining a Buy rating on the stock. The firm's analysis followed the release of Caribou's financial results for the fourth quarter of 2023.
Caribou Biosciences reported a net loss of $0.39 per share for the fourth quarter of 2023, which was closely aligned with the analyst's projection of a $0.41 per share loss. The company's research and development (R&D) expenses totaled approximately $31.3 million, and selling, general and administrative (SG&A) expenses were around $9.7 million for the quarter. These figures were compared against the firm's estimates of $29.7 million for R&D and $10.0 million for SG&A expenses.
Looking ahead, H.C. Wainwright has revised its expectations for Caribou's full-year net loss in 2024 to $1.66 per share, an improvement from the prior estimate of $1.79 per share. The adjustment was made after reviewing the company's recent financial performance and future prospects.
The biotechnology firm concluded the year 2023 with a strong balance sheet, boasting $372.4 million in cash, cash equivalents, and marketable securities. According to the analyst, this positions Caribou to have an operational runway extending into the first quarter of 2026.
The decision to raise the price target comes after a detailed discounted cash flow (DCF) valuation analysis. The firm's continued endorsement of a Buy rating alongside the increased price target reflects a positive outlook on Caribou Biosciences' stock performance over the next 12 months.
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