On Thursday, an analyst from H.C. Wainwright adjusted the price target for Fate Therapeutics (NASDAQ:FATE) shares, a clinical-stage biopharmaceutical company, to $5.00, down from the previous $7.00.
Despite this change, the firm maintained a Neutral stance on the stock. The revision came after Fate Therapeutics reported its financial results for the first quarter of 2024.
Fate Therapeutics disclosed a net loss of $0.47 per share for the first quarter of 2024, which was in close alignment with the anticipated net loss of $0.46 per share. The company's collaboration revenue for the quarter was reported at $1.9 million, nearly double the forecasted $1.0 million.
Research and development (R&D) expenses were $32.1 million, slightly below the estimated $32.8 million, while selling, general and administrative (SG&A) expenses were $20.9 million, exceeding the anticipated $18.1 million.
Looking ahead, H.C. Wainwright now projects a full-year 2024 net loss for Fate Therapeutics at $1.75 per share, which is an improvement from the previous estimate of a $1.90 per share loss.
The adjusted forecast follows a reassessment of the company's financials and a raise in the discount rate applied by the analyst firm, which increased to 12% from the previous 11%.
The updated 12-month price target reflects the revised earnings outlook and the increased discount rate. The analyst from H.C. Wainwright reiterated the Neutral rating, indicating a stance of neither a strong buy nor sell recommendation for investors, while adjusting the price target to reflect the updated financial projections for Fate Therapeutics.
InvestingPro Insights
Following the recent financial analysis of Fate Therapeutics (NASDAQ:FATE) by H.C. Wainwright, additional context is provided by real-time data and insights from InvestingPro. Despite a challenging financial performance, Fate Therapeutics holds more cash than debt on its balance sheet, which is a positive sign for the company's financial stability. Moreover, six analysts have revised their earnings upwards for the upcoming period, suggesting a potential shift in the company's economic trajectory.
In terms of InvestingPro Data, Fate Therapeutics has a market capitalization of approximately $482.65 million and is trading at a price to book ratio of 1.13 as of Q1 2024. The company's revenue for the last twelve months stands at $6.48 million, with a significant decline in revenue growth during the same period. Despite an impressive return of 8.72% over the last week, the stock has experienced a considerable price drop of 21.19% over the past month and 43.92% over the last three months, highlighting the stock's volatility.
InvestingPro Tips also point out that the company is not expected to be profitable this year and has been suffering from weak gross profit margins. However, it's noteworthy that the company's liquid assets exceed its short-term obligations, which could provide some financial cushioning. For investors seeking a deeper dive into Fate Therapeutics' financial health and future prospects, there are additional tips available on InvestingPro. To access these tips and gain a comprehensive understanding of Fate Therapeutics' performance, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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