Analyst Justin Zelin of BTIG reiterated a Buy rating on Jasper Therapeutics, reducing the price target to $20.00.
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Justin Zelin’s rating is based on the continued compelling safety and efficacy profile of Jasper Therapeutics’ drug, briquilimab, despite recent setbacks. The company faced a significant issue with a faulty drug lot that affected the efficacy data in certain cohorts of their BEACON trial. However, the overall efficacy remains strong, with high complete response rates in other cohorts, and the safety profile is favorable, with mild and resolvable side effects.
Despite the delay in the trial timelines and the temporary pause in the asthma trial, the management’s proactive approach to addressing the manufacturing issue and their plans to proceed with further studies are promising. The company’s valuation, supported by a detailed discounted cash flow analysis, and their financial runway into late 2025, further justify the Buy rating. Zelin believes that the company’s strategic adjustments and the potential for future positive data updates make Jasper Therapeutics a worthwhile investment.
In another report released today, H.C. Wainwright also maintained a Buy rating on the stock with a $20.00 price target.