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Jasper Therapeutics stock set for growth with novel stem cell therapy - JMP

EditorEmilio Ghigini
Published 2024/09/09, 10:14
JSPR
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On Monday, Jasper Therapeutics (NASDAQ:JSPR), a clinical-stage biotechnology company, received a Market Outperform rating from JMP Securities, with a price target set at $70. The biotech firm, with a market capitalization of approximately $290 million, is developing novel therapeutics with a focus on hematopoietic stem cell biology.


The company's leading product, briquilimab, is a new biologic targeting c-Kit, a well-established and derisked target relevant to a range of pathologies with large, underserved patient populations. JMP Securities highlighted briquilimab as a differentiated fast follower in the KIT monoclonal antibody space, noting its potential for less-frequent dosing, lower side effects, and a more rapid onset of benefits compared to standard of care.


The firm's analysis suggests that the key differentiators for briquilimab, primarily driven by its differentiated half-life, align with the needs of patients and doctors. These attributes could position Jasper Therapeutics favorably in the market, with near-term readouts expected in several significant indications.


Furthermore, JMP Securities pointed to Celldex (NASDAQ:CLDX) as a valuation benchmark, given its c-Kit inhibitor, barzolvolimab, is in late-stage development and has a market cap of $2.9 billion, compared to Jasper Therapeutics' market cap of approximately $290 million. The comparison underscores the potential growth opportunity for Jasper Therapeutics if its clinical developments prove successful.


In other recent news, several firms have maintained their confidence in Jasper Therapeutics, with H.C. Wainwright maintaining a Buy rating and a $65.00 price target on the company's shares. This follows Jasper Therapeutics' recent second-quarter financial results and a corporate update on their BEACON study's progress. The company has expanded the BEACON study to include a new cohort of patients who will receive a 180 mg dose of the drug every eight weeks.


RBC Capital revised its price target for Jasper to $68 from $70, while maintaining an Outperform rating, due to a slight delay in the BEACON trial readout for Jasper's leading drug. Meanwhile, TD Cowen, BTIG, and Stifel initiated coverage with a Buy rating. BTIG set a price target of $90.00 and Stifel at $86.00, highlighting the potential of Jasper's Briqui.


Stifel initiated coverage on Jasper Therapeutics with a Buy rating and a price target of $86.00, based on the potential success of Jasper's briquilimab in treating both Chronic Spontaneous Urticaria (CSU) and Chronic Inducible Urticaria (CIndU). BTIG initiated coverage on Jasper Therapeutics with a Buy rating and set a price target of $90.00 for the shares, citing the potential of briquilimab in treating chronic urticaria and severe asthma.


These developments are in line with updates on Jasper Therapeutics' clinical trials. The SPOTLIGHT study in Chronic Inducible Urticaria and a trial for asthma are both scheduled for the fourth quarter of 2024. Furthermore, Jasper is preparing for a proof-of-concept asthma challenge study, also slated for the fourth quarter of 2024.


InvestingPro Insights


In light of JMP Securities' Market Outperform rating for Jasper Therapeutics (NASDAQ:JSPR), real-time data from InvestingPro provides additional context to the company's financial situation and stock performance. With a market capitalization of $281.41 million, the company holds a substantial position in the biotech industry. Despite a challenging P/E ratio of -3.8, indicating investor concerns about profitability, Jasper Therapeutics has a notable strength in its liquidity position, with more cash than debt on its balance sheet.


InvestingPro Tips highlight that analysts have recently revised their earnings expectations upwards for the upcoming period, suggesting potential optimism about the company's future performance. However, it is important to note that the company is quickly burning through its cash reserves, and analysts do not expect it to be profitable this year. On the positive side, Jasper Therapeutics has demonstrated a strong return over the last month, with a price total return of 14.01%, and its liquid assets exceed short-term obligations, providing some financial stability.


For investors considering Jasper Therapeutics, it's worth exploring the additional 12 InvestingPro Tips available at https://www.investing.com/pro/JSPR, which provide deeper insights into the company's financial health and stock potential. These tips could be crucial for making informed investment decisions in the volatile biotech sector.

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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