4D Molecular Therapeutics: Encouraging Early CF Gene Therapy Signals Tempered by Limited Data, Supporting a Neutral Hold Rating

Morgan Stanley analyst Judah Frommer has maintained their neutral stance on FDMT stock, giving a Hold rating on December 9.

Judah Frommer has given his Hold rating due to a combination of factors tied to both encouraging clinical signals and remaining uncertainties in 4D Molecular Therapeutics’ CF program. The Phase 1 AEROW data support selecting the 2.5E14 vg dose of 4D-710 as the lead regimen, with safety, target-level transgene expression, and early lung function trends all pointing in the right direction. Importantly, the chosen dose appears to achieve expression in the desired airway epithelial cells while avoiding excessive expression and off-target cell involvement seen at higher dose levels, and biopsy results suggest that expression can be maintained long enough to support a roughly annual re-dosing strategy.

At the same time, Frommer highlights that these data are still based on a small patient cohort and that functional readouts, such as lung performance, remain difficult to interpret at this stage. The program is not yet fully reflected in Morgan Stanley’s financial model, and key value-inflecting evidence will likely come only with the larger, Phase 2 dose-expansion results expected in the second half of 2026. While the recent Cystic Fibrosis Foundation funding and the sizeable unmet need among patients who cannot use CFTR modulators add to the long-term opportunity, the early-stage nature of the data and the lengthy timeline to pivotal results justify a more balanced, wait-and-see stance. Taken together, these elements lead Frommer to maintain a neutral, Hold rating on FDMT rather than moving to a more decisive bullish or bearish view.

In another report released on December 9, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $11.00 price target.

Based on the recent corporate insider activity of 9 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FDMT in relation to earlier this year.