Analyst John Newman from Canaccord Genuity maintained a Buy rating on Seres Therapeutics (MCRB – Research Report) and keeping the price target at $10.00.
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John Newman’s rating is based on several compelling factors. The FDA’s support for using bloodstream infections (BSIs) as the primary endpoint in the upcoming SER-155 study is a crucial advancement for Seres Therapeutics. This endorsement is significant as it marks a shift from the previous Phase 1b study, which assessed BSIs over a longer period. The previous trial demonstrated a notable reduction in BSIs, highlighting the potential efficacy of SER-155.
Furthermore, the strategic selection of patients for the next study is expected to play a vital role, particularly with the use of post-transplant cyclophosphamide (PTCy), which has been shown to increase the risk of BSIs. This could enhance the study’s outcomes by enrolling a larger cohort of high-risk patients. Additionally, the anticipated submission of a new protocol in 2025, mirroring the successful Phase 1b design, further de-risks the program. The ongoing search for a partnership for SER-155 also adds to the positive outlook, reinforcing the Buy rating with a $10 price target.