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BTIG sees Carisma Therapeutics as 'undervalued', starts shares coverage with buy

Published 04/11/2024, 09:08 PM

On Thursday, BTIG initiated coverage on Carisma Therapeutics Inc (NASDAQ: CARM), a clinical-stage cell therapy company, with a Buy rating and a price target of $6.00. Carisma Therapeutics is focused on the development of macrophage therapies for treating both oncology and non-oncology indications. The company's approach to solid tumors aims to utilize macrophages' natural abilities to recruit and stimulate immune cells, thereby promoting long-lasting immune responses.

The lead program of Carisma Therapeutics, CT-0525, targets refractory or relapsed HER2+ solid tumors. The company anticipates releasing monotherapy data from this program by the end of 2024, with combination therapy data involving pembrolizumab expected in the first half of 2025. These upcoming clinical milestones are seen as significant catalysts for the company's growth.

Moreover, Carisma's collaboration with Moderna (NASDAQ:MRNA) on the development of in-vivo macrophage therapies further underscores the potential of their technology. This partnership is viewed as a validation of Carisma's innovative approach to cell therapy.

In addition to its oncology programs, Carisma Therapeutics is also exploring treatments for fibrosis. Although this early-stage program carries both high risk and high reward, preclinical data is anticipated in the second quarter of 2024. The company's diverse portfolio of treatments and the expected clinical data release serve as a basis for the positive outlook.

BTIG's analysis suggests that Carisma Therapeutics is currently undervalued when compared to its cell therapy peers. The firm also highlights that Carisma has sufficient funding to continue its operations into the third quarter of 2025. With three clinical catalysts expected within the next 12 to 18 months, there is potential for additional upside from the company's in-vivo macrophage partnership and its fibrosis programs.

InvestingPro Insights

As Carisma Therapeutics Inc (NASDAQ: CARM) progresses with its innovative macrophage therapies, the financial landscape of the company provides additional context for investors. With a market capitalization of $79.35 million and a notable revenue growth of 51.71% in the last twelve months as of Q4 2023, Carisma demonstrates a capacity for expansion despite its challenges. The company's cash position is also a point of interest, as it holds more cash than debt, providing some financial stability.

InvestingPro Tips highlight that Carisma Therapeutics is trading at a low revenue valuation multiple and has a high shareholder yield, suggesting that the stock may be undervalued. Analysts have also revised their earnings upwards for the upcoming period, indicating potential optimism in the company's financial performance. However, it's important to note that Carisma is not expected to be profitable this year and has been quickly burning through cash, which could be a concern for long-term sustainability.

For investors seeking a more in-depth analysis, InvestingPro provides additional insights into Carisma Therapeutics. There are 13 more InvestingPro Tips available that could further inform your investment decisions. To explore these tips and gain a comprehensive understanding of Carisma's financial health and prospects, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/CARM.

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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