Piper Sandler has reaffirmed its Overweight rating and $34.00 price target for Cargo Therapeutics (NASDAQ: CRGX).
The firm's stance is based on new research that supports the safety profile of CAR-T therapies. The referenced study by Tix et al., linked to MSKCC, indicates that the incidence rate of second primary malignancies (SPM) is comparable between patients undergoing CAR-T therapy and those receiving standard of care (SOC).
The recent paper is seen as a response to FDA warnings issued in April 2024 regarding SPM risks with approved CAR-T treatments. Piper Sandler anticipates that CAR-T therapies will continue to advance into earlier treatment stages for large B-cell lymphoma (LBCL) and multiple myeloma (MM).
The firm also expects increased clinical adoption of novel CAR-T therapies, such as those targeting CD22, in patients who have relapsed after CAR-T treatment.
Cargo Therapeutics has witnessed significant progress in its clinical trials and strategic operations. The company's pivotal FIRCE-1 trial for firi-cel has seen a substantial quarter-over-quarter increase in patient enrollment, from 20 to 38 participants, and a manufacturing success rate exceeding 95%.
The Phase I trial of firi-cel showed a complete response rate of 53% and a median overall survival of 25.7 months. Analyst firms TD Cowen and Piper Sandler have maintained their Buy and Overweight ratings on the company's stock, respectively.
Cargo Therapeutics is also advancing its CRG-023 therapy, which is currently in the investigational new drug-enabling studies phase. The company has secured approximately $110 million from a private investment in public equity financing, supporting the preparation of a Biologics License Application for the FIRCE-1 study and further development of the CRG-023 program. In addition, Cargo Therapeutics has entered into a sublease agreement with Vaxcyte, Inc., aiming to maximize the utility of its headquarters in San Carlos, California.
Further, Truist Securities and Chardan Capital Markets have maintained a Buy rating on the company's stock, adjusting their price targets to $32 and $28 respectively. Lastly, Cargo Therapeutics announced the appointment of Dr. Kapil Dhingra, a medical oncologist with over 25 years of experience, to its Board of Directors.
InvestingPro Insights
Amid Piper Sandler's reaffirmation of Cargo Therapeutics' Overweight rating, it's crucial for investors to consider the company's financial health and market performance. According to InvestingPro data, Cargo Therapeutics holds a market capitalization of $1.01 billion. The company has experienced a strong return over the last month, with a 51.59% increase, and over the last year, with a 51.27% increase. These figures underscore a significant investor confidence in the stock, aligning with Piper Sandler's optimistic view.
However, it's important to note that Cargo Therapeutics does not pay dividends to shareholders, which may influence investment decisions for those seeking regular income. Additionally, two analysts have revised their earnings downwards for the upcoming period, which could suggest potential headwinds for the company's financial performance. For those interested in a more comprehensive analysis, there are over 10 additional InvestingPro Tips available, offering in-depth insights into Cargo Therapeutics' financials and projections.
The InvestingPro Tips highlight that Cargo Therapeutics holds more cash than debt on its balance sheet, indicating a solid liquidity position that could support its ongoing research and development activities in CAR-T therapies. Furthermore, the company's liquid assets exceed its short-term obligations, providing it with financial flexibility. These financial metrics are particularly relevant for investors considering the company's ability to sustain its operations and fund future growth.
For a deeper dive into Cargo Therapeutics' financials and to access further expert analysis, investors can explore the additional tips on InvestingPro: https://www.investing.com/pro/CRGX.
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