Optimistic Buy Rating for Fate Therapeutics Driven by Promising FT819 Therapy and Pipeline Expansion

Analyst Daina Graybosch from Leerink Partners maintained a Buy rating on Fate Therapeutics (FATE – Research Report) and keeping the price target at $12.00.

Daina Graybosch’s rating is based on the promising outlook for Fate Therapeutics’ FT819, an iPSC-derived allo-CD19-CAR-T cell therapy. The upcoming Phase 1 lupus update at the EULAR conference is anticipated to demonstrate strong early efficacy and exceptional safety, which could positively influence the stock and investor sentiment. However, the update is expected to be limited, covering the same three patients as before, with a more substantial update expected by the end of 2025.
Additionally, Fate Therapeutics is expanding its pipeline by initiating dose expansion cohorts for other B-cell mediated autoimmune diseases, which could further enhance its market position. Despite some uncertainties regarding the new CBER leadership’s stance on accelerated approval pathways for novel cell therapies, the recent RMAT designation for FT819 provides Fate with valuable access to regulators to refine their development strategy. These factors combined contribute to Graybosch’s optimistic Buy rating for Fate Therapeutics.

Graybosch covers the Healthcare sector, focusing on stocks such as BioNTech SE, Merck & Company, and Gilead Sciences. According to TipRanks, Graybosch has an average return of -16.6% and a 30.00% success rate on recommended stocks.

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