Acumen Pharmaceuticals, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Jason Zemansky from Bank of America Securities maintained a Buy rating on the stock and has a $10.00 price target.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Jason Zemansky has given his Buy rating due to a combination of factors that enhance Acumen Pharmaceuticals’ strategic position. The recent licensing agreement with JCR Pharmaceuticals for their blood-brain barrier penetrating technology, J-Brain Cargo, is a significant development. This technology could improve the delivery and efficacy of Acumen’s anti-abeta antibodies, including their lead asset sabirnetug, while also providing product differentiation. The deal terms are favorable, having been finalized after a year of feasibility studies and structured to be largely backloaded, which minimizes immediate financial impact.
Despite some market concerns regarding the company’s cash position and the broader macroeconomic environment, Zemansky believes that the potential benefits of the JCR collaboration outweigh these risks. The upfront costs are minimal, and the potential milestone payments are expected to occur after 2026, aligning with Acumen’s financial projections. Furthermore, the collaboration could enhance the clinical profile of Acumen’s assets and provide additional news flow, potentially acting as catalysts ahead of key readouts, thereby maintaining a compelling risk/reward profile for the stock.
ABOS’s price has also changed moderately for the past six months – from $1.710 to $1.310, which is a -23.39% drop .