InflaRx’s Strategic Shift to INF904: A Prudent Move with Promising Prospects

Leerink Partners analyst Joseph Schwartz has maintained their bullish stance on IFRX stock, giving a Buy rating yesterday.

Joseph Schwartz has given his Buy rating due to a combination of factors surrounding InflaRx’s strategic shift and future potential. Despite the setback with the Phase 3 study of vilobelimab being halted for futility, Schwartz sees promise in the company’s decision to focus on INF904, an oral complement C5a receptor inhibitor. This shift in focus is seen as a prudent move, as INF904 is now positioned as the lead asset with potential in treating hidradenitis suppurativa and chronic spontaneous urticaria.
Furthermore, Schwartz acknowledges the company’s strong cash position, which could extend beyond the previously guided timeline into 2027. This financial stability, coupled with the potential upside from INF904’s development, underpins the Buy rating. The analyst has adjusted the price target to $2, reflecting the new valuation driven by INF904, while maintaining an Outperform rating due to the promising prospects of the pipeline asset.

According to TipRanks, Schwartz is a 4-star analyst with an average return of 9.3% and a 39.84% success rate. Schwartz covers the Healthcare sector, focusing on stocks such as Wave Life Sciences, Sarepta Therapeutics, and Travere Therapeutics.

In another report released yesterday, Raymond James also maintained a Buy rating on the stock with a $2.00 price target.