On Thursday, RBC Capital Markets adjusted its price target for Jasper Therapeutics (NASDAQ:JSPR) to $48.00, down from the previous $68.00, while retaining an Outperform rating on the stock. The decision comes after Jasper Therapeutics reported initial data from the BEACON study, which led to significant volatility in the company's stock price.
Shares of Jasper Therapeutics experienced a steep decline, dropping 61% compared to a 1% decline in the XBI biotech index, bringing its market capitalization to $105 million. According to InvestingPro data, the stock's RSI indicates oversold territory, with shares trading near their 52-week low of $6.61.
The RBC analyst noted that the market's reaction might be considered excessive given the positive efficacy signs at the 240 mg dose and the early safety profile of the drug. The management team at Jasper Therapeutics underscored the importance of the phase IIb dose selection expected in mid-2025 and the commencement of the CSU registrational trial in the second half of 2025.
These milestones are anticipated to provide clearer insights into the drug briquilimab's benefits and risks. InvestingPro analysis shows strong analyst consensus, with price targets ranging from $40 to $90, suggesting significant upside potential. Get the full picture with InvestingPro's comprehensive Research Report, available for over 1,400 US stocks.
The RBC analyst believes that the next critical milestones for Jasper Therapeutics could offer a chance to reassess the company's valuation. Despite the reduction in the price target, the analyst maintains a positive outlook due to the potential for a rerating based on the upcoming developments.
The BEACON study's initial data has prompted RBC Capital to revise its perspective on briquilimab's position in the chronic spontaneous urticaria (CSU) treatment landscape. The RBC analyst remains optimistic, suggesting that improved clarity on the drug's impact at future doses could lead to a reevaluation of Jasper Therapeutics' stock.
In other recent news, Jasper Therapeutics has experienced significant developments. BTIG recently adjusted its price target for the company to $64, while maintaining a Buy rating. This change comes in response to the company's BEACON study data and the anticipated initial asthma data, both expected in the second half of 2025. Citi has also maintained a $70 price target on Jasper Therapeutics, following the release of Jasper's BEACON study data.
Several analysts, including those from Stifel, Oppenheimer, BMO Capital Markets, H.C. Wainwright, and BTIG, have maintained positive ratings on Jasper Therapeutics. Analysts at BMO Capital Markets, for instance, have upheld their Outperform rating on the company, expressing optimism for the potential efficacy of Jasper's lead therapeutic candidate, briquilimab, particularly at the 180mg dose level.
Jasper Therapeutics plans to initiate a registrational CSU program in the second half of 2025 and aims to expand the BEACON trial to gather additional supporting data. The company has also received clearance from Health Canada to commence a Phase 1b/2a clinical trial for briquilimab as a potential treatment for asthma.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.