Rapport Therapeutics, Inc. (RAPP) AI Stock Analysis

• Market Cap: $545.28M
• Dividend Yield: N/A
• Average Volume (3M): 161.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 69
• Sector: General
• Sector Strength: N/A
• Industry: Biotechnology
• EPS (TTM): -0.75
• Shares Outstanding: 36,497,920
• 10 Day Avg. Volume: 167,158
• 30 Day Avg. Volume: 161,256
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.28
• Enterprise Value/Revenue: 214.33
• Enterprise Value/Gross Profit: -1.13K
• Enterprise Value/Ebitda: -1.52
• 1Y Price Target: $34.00
• Price Target Upside: 127.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 44 Neutral
• Price Target: ―

Rapport Therapeutics, Inc. faces significant challenges with no revenue and substantial operational losses despite strong equity financing and low leverage. Technical indicators point to a downward trend, and valuation is difficult to ascertain. Positive clinical trial results offer some optimism, but leadership changes contribute to uncertainty.

Positive Factors

Analyst Recommendation

Analyst's recommendation for the stock is a 'Buy' with a price target set at 42.00.

Clinical Validation

Topline data readout in refractory focal epilepsy is anticipated to provide early clinical validation for RAP-219, boosting interest and momentum for the company.

Product Differentiation

RAP-219 is expected to demonstrate a sufficiently differentiated clinical profile to achieve commercial success in refractory focal epilepsy.

Negative Factors

Market Challenges

Unmet needs in the current focal epilepsy treatment landscape indicate challenges that Rapport Therapeutics must address.

Rapport Therapeutics, Inc. Business Overview & Revenue Model

Company Description

Rapport Therapeutics, Inc. (RAPP) is a biotechnology company focused on developing precision medicines to treat neurological disorders. By leveraging advanced drug discovery techniques, the company aims to create targeted therapies that address specific neural pathways associated with various conditions. Rapport Therapeutics operates in the biopharmaceutical sector, with a core emphasis on innovative research and development in neuroscience.

How the Company Makes Money

Rapport Therapeutics, Inc. generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company engages in partnerships and collaborations with other pharmaceutical firms to co-develop and license its therapies, which can provide milestone payments and royalties. Additionally, Rapport may secure funding through grants and research agreements to support its drug discovery and development efforts. The company's financial growth is supported by strategic alliances and the successful advancement of its drug pipeline through clinical trials.

Rapport Therapeutics, Inc. Financial Statement Overview

Summary

Rapport Therapeutics, Inc. shows strong equity financing and low leverage, which supports its financial stability despite the absence of revenue and increasing operational losses. The biotech sector's nature, with its reliance on external financing for research, poses risks if funding sources change. Continued focus on innovation and achieving revenue milestones is critical for future financial health.

Income Statement

Rapport Therapeutics, Inc. has reported no revenue for the past three years, with increasing losses, as evidenced by the rising net loss from $10.65 million in 2022 to $78.31 million in 2024. This indicates a challenging revenue generation environment, common in early-stage biotech companies focused on research and development without commercial products.

Balance Sheet

The company maintains a strong equity position with stockholders' equity increasing from $19.51 million in 2022 to $305.43 million in 2024. The low debt levels, with a debt-to-equity ratio of approximately 0.005, suggest financial stability. However, the lack of revenue generation poses a risk to long-term sustainability if financing sources diminish.

Cash Flow

Operating cash flow has significantly deteriorated, with free cash flow going from -$3.53 million in 2022 to -$67.23 million in 2024. The heavy reliance on financing cash flows, notably a $221.63 million inflow in 2024, supports operations but highlights the potential cash flow challenges if external funding becomes scarce.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	720.00K	0.00	0.00	0.00
Gross Profit	-136.00K	-839.00K	-112.00K	-15.00K
EBITDA	-101.29M	-77.47M	-34.66M	-10.35M
Net Income	-88.31M	-78.31M	-34.79M	-10.65M
Balance Sheet
Total Assets	285.50M	314.93M	155.42M	31.60M
Cash, Cash Equivalents and Short-Term Investments	260.45M	305.28M	147.56M	31.16M
Total Debt	11.86M	1.48M	2.15M	10.44M
Total Liabilities	21.98M	9.51M	14.48M	12.10M
Stockholders Equity	263.51M	305.43M	140.94M	19.50M
Cash Flow
Free Cash Flow	-76.85M	-67.23M	-28.82M	-3.53M
Operating Cash Flow	-76.17M	-64.83M	-27.18M	-3.24M
Investing Cash Flow	22.52M	-170.14M	-78.86M	-5.28M
Financing Cash Flow	-1.45M	221.63M	145.14M	39.69M

Rapport Therapeutics, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAPP, the sentiment is Positive. The current price of 14.94 is below the 20-day moving average (MA) of 15.07, above the 50-day MA of 13.53, and above the 200-day MA of 14.52, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 53.03 is Neutral, neither overbought nor oversold. The STOCH value of 70.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RAPP.

Rapport Therapeutics, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRTC	59 Neutral	$416.90M	8.06	11.96%	―	43.67%	―
Sector *	56 Neutral	$6.65B	8.22	-9.67%	6.22%	14.63%	5.17%
ALT	52 Neutral	$293.61M	―	-55.91%	―	-95.11%	27.25%
RAPP	44 Neutral	$545.28M	―	-29.42%	―	―	―
CELC	44 Neutral	$2.04B	―	-115.39%	―	―	-8.45%
ORIC	43 Neutral	$811.33M	―	-43.82%	―	―	-7.33%
AUTL	41 Neutral	$492.36M	―	-52.18%	―	187.52%	26.32%

Rapport Therapeutics, Inc. Corporate Events

Rapport Therapeutics Appoints New CMO Amid Phase 2a Updates

On March 3, 2025, Rapport Therapeutics announced the appointment of Jeffrey Sevigny as Chief Medical Officer and provided updates on its Phase 2a trials for RAP-219 in refractory focal epilepsy and bipolar mania. The company expects to report topline results for the epilepsy trial in the third quarter of 2025 and plans to initiate a trial for bipolar mania in the same period, with results anticipated in the first half of 2027. These developments are significant for Rapport’s operational focus and strategic positioning in the neuroscience market.