Clinical Momentum and Platform Validation Drive Undervalued Upside at Werewolf Therapeutics

Analyst Jason Zemansky of Bank of America Securities maintained a Buy rating on Werewolf Therapeutics, retaining the price target of $7.00.

Jason Zemansky has given his Buy rating due to a combination of factors tied to Werewolf Therapeutics’ clinical progress and technology platform. He highlights that recent data for the company’s masked IL‑2 (WTX‑124) and IL‑12 (WTX‑330) candidates support both the underlying biology of the cytokines and the masking approach, which appears to mitigate historical safety concerns. In IL‑2 monotherapy, he notes that objective response rates in a heavily pretreated population compare favorably with typical outcomes seen when patients are simply re-exposed to immune checkpoint inhibitors, and he sees additional upside from future combination regimens. He also emphasizes that despite a sharp share price decline driven by disappointment over limited combination data disclosures, the fundamental efficacy and safety signals remain positive, and the market reaction seems excessive.

At the same time, Zemansky underscores that the updated IL‑12 safety profile shows clear improvement, with fewer severe adverse events under the new manufacturing process and an early but encouraging response in a difficult-to-treat gallbladder cancer case. He believes these developments validate the platform further and improve the likelihood of regulatory and clinical success, including potential registration-directed paths for WTX‑124 as a monotherapy. He also points to the company’s plan to secure partners for both WTX‑124 and WTX‑330 and to concentrate internal efforts on its T‑cell engager pipeline, which he views as a significant, underrecognized value driver. Taken together, the clinical momentum, platform validation, partnering optionality, and a depressed share price relative to his $7 price objective underpin his conviction that the stock offers attractive upside potential, justifying his Buy rating.

Zemansky covers the Healthcare sector, focusing on stocks such as Kura Oncology, Arcus Biosciences, and Cytokinetics. According to TipRanks, Zemansky has an average return of 21.0% and a 61.58% success rate on recommended stocks.