Leerink Partners analyst Thomas Smith has maintained their neutral stance on EQ stock, giving a Hold rating on August 12.
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Thomas Smith has given his Hold rating due to a combination of factors surrounding Equillium’s recent strategic moves and financial position. The company announced a $50 million private placement to fund the clinical development of EQ504, an AhR modulator, which is expected to enter a Phase 1 trial by mid-2026. This financing is seen as a positive step, alleviating immediate financial concerns and extending the company’s cash runway through 2027.
However, despite these advancements, the company is still in the early stages of clinical trials with EQ504, and there remains uncertainty regarding the outcome of these trials. Additionally, while the private placement reflects renewed investor interest, the company’s recent setbacks with itolizumab, another therapeutic candidate, contribute to a cautious outlook. As a result, Thomas Smith maintains a Hold rating, reflecting a balanced view of the potential opportunities and risks associated with Equillium’s current pipeline and financial strategy.
In another report released on August 12, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $0.50 price target.
EQ’s price has also changed slightly for the past six months – from $0.889 to $0.885, which is a -0.45% drop .