Leerink Partners analyst Thomas Smith has maintained their neutral stance on QTTB stock, giving a Hold rating yesterday.
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Thomas Smith’s rating is based on Q32 Bio’s strategic restructuring efforts, prioritizing the development of bempikibart for alopecia areata, which aims to extend their cash runway into the second half of 2026. The company has decided to deprioritize other projects like ADX-097 to focus resources on this promising treatment, which has shown encouraging results in early studies.
However, the hold rating reflects a cautious perspective due to the early stage of this development and the inherent risks associated with clinical trials. The company’s decision to focus on a single therapeutic area might limit its diversification, which could be a concern for some investors. Additionally, the newly set price target of $6, down from $9, indicates tempered expectations regarding the stock’s short-term performance. Thomas Smith advises investors to remain cautious while acknowledging the potential of the ongoing developments.
Smith covers the Healthcare sector, focusing on stocks such as Argenx Se, Viridian Therapeutics, and Viking Therapeutics. According to TipRanks, Smith has an average return of 37.8% and a 49.90% success rate on recommended stocks.
In another report released yesterday, BMO Capital also downgraded the stock to a Hold with a $3.00 price target.