H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on RAPT Therapeutics (RAPT – Research Report) today and set a price target of $10.00.
Ram Selvaraju has given his Buy rating due to a combination of factors including the strategic licensing agreement RAPT Therapeutics secured with Shanghai Jemincare Pharmaceutical Co., Ltd. This agreement grants RAPT worldwide rights, excluding certain regions, to develop and commercialize RPT904, a promising anti-IgE monoclonal antibody. The potential of RPT904 to offer an improved therapeutic option over existing treatments for allergic disorders, such as omalizumab, is a significant factor in the positive outlook.
Additionally, despite the financial loss reported in 2024, which was largely due to the upfront payment for the licensing rights, RAPT’s strong cash position is expected to sustain operations into 2027. The financial projections and the potential market opportunities for RPT904, particularly in food allergy and CSU, underpin the Buy rating. The valuation approach used, which includes a discounted cash flow analysis, supports a firm value of approximately $1.4 billion and a 12-month price target of $10 per share. However, the rating also acknowledges risks such as potential negative trial outcomes and market uptake challenges.
In another report released on March 6, Wells Fargo also maintained a Buy rating on the stock with a $6.00 price target.