Rapport Therapeutics, Inc. (RAPP) AI Stock Analysis

• Market Cap: $1.34B
• Dividend Yield: N/A
• Average Volume (3M): 393.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• Revenue Growth: N/A
• EPS Growth: -37.07%
• Country: US
• Employees: 69
• Sector: General
• Sector Strength: N/A
• Industry: Biotechnology
• EPS (TTM): -0.71
• Shares Outstanding: 47,661,137
• 10 Day Avg. Volume: 451,384
• 30 Day Avg. Volume: 393,246
• PEG Ratio: -0.47
• Price to Book (P/B): 12.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -54.72
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -5.90
• 1Y Price Target: $54.25
• Price Target Upside: 92.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -3.68
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $31.00 ▲(10.28% Upside)

The score is primarily held back by pre-revenue fundamentals with widening losses and increasing cash burn, despite a strong, low-debt balance sheet. Technicals are supportive (uptrend with positive momentum), but valuation is constrained by negative earnings and no dividend yield data.

Positive Factors

Clinical Trial Success

Successful Phase 2a trial results for RAP-219 in drug-resistant focal onset seizures highlight the potential for a new therapeutic option, strengthening Rapport's pipeline and supporting future revenue from successful commercialization.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, enabling continued investment in R&D and supporting operations without immediate pressure to secure additional funding.

Pipeline Advancement

Advancing RAP-219 into Phase 3 trials indicates progress towards potential market approval, which could significantly enhance the company's market position and revenue prospects upon successful commercialization.

Negative Factors

Widening Losses

Widening losses reflect high operational costs without offsetting revenue, increasing reliance on external funding and raising the risk of financial strain if new capital is not secured.

Rising Cash Burn

Increasing cash burn rate can shorten the company's funding runway, necessitating frequent capital raises, which may dilute existing shareholders and impact long-term financial health.

Pre-Revenue Status

As a pre-revenue biotech, Rapport's financial sustainability heavily depends on securing external funding, which can be challenging and may affect the company's ability to sustain operations and advance its pipeline.

Rapport Therapeutics, Inc. Business Overview & Revenue Model

Company Description

Rapport Therapeutics, Inc., operates as a clinical-stage biopharmaceutical company that focuses on the discovery and development of transformational small molecule medicines for patients suffering from central nervous system (CNS) disorders. Its lead product candidate is receptor associated protein (RAP)-219, an investigational small molecule that is designed to inhibit TARPy8-containing AMPARs with picomolar affinity for the treatment of focal epilepsy and other CNS disorders, including peripheral neuropathic pain and bipolar disorder. The company also develops RAP-199, a TARPy8 targeted molecule with differentiated chemical and pharmacokinetic properties; and nicotinic acetylcholine receptor (nAChR) programs, such as a6 nAChR to treat chronic pain and a9a10 nAChR for the treatment of hearing disorders. The company was formerly known as Precision Neuroscience NewCo, Inc. and changed its name to Rapport Therapeutics, Inc. in October 2022. Rapport Therapeutics, Inc. was incorporated in 2022 and is based in Boston, Massachusetts.

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	0.00	0.00	0.00	0.00
Gross Profit	0.00	-839.00K	-112.00K	-15.00K
EBITDA	-106.04M	-77.47M	-34.66M	-10.35M
Net Income	-97.70M	-78.31M	-34.79M	-10.65M
Balance Sheet
Total Assets	535.32M	314.93M	155.42M	31.60M
Cash, Cash Equivalents and Short-Term Investments	513.03M	305.28M	147.56M	31.16M
Total Debt	11.87M	1.48M	2.15M	10.44M
Total Liabilities	23.71M	9.51M	14.48M	12.10M
Stockholders Equity	511.62M	305.43M	140.94M	19.50M
Cash Flow
Free Cash Flow	-77.89M	-67.23M	-28.82M	-3.53M
Operating Cash Flow	-77.22M	-64.83M	-27.18M	-3.24M
Investing Cash Flow	18.78M	-170.14M	-78.86M	-5.28M
Financing Cash Flow	270.48M	221.63M	145.14M	39.69M

Rapport Therapeutics, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 28.11
• 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 Neutral. The current price of 28.11 is below the 20-day moving average (MA) of 29.86, above the 50-day MA of 27.98, and above the 200-day MA of 18.44, indicating a neutral trend. The MACD of 0.57 indicates Positive momentum. The RSI at 44.81 is Neutral, neither overbought nor oversold. The STOCH value of 36.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RAPP.

Rapport Therapeutics, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVAC	70 Outperform	$1.05B	6.50	17.68%	―	-86.40%	30.72%
INVA	61 Neutral	$1.49B	14.25	15.17%	―	9.76%	88.06%
RAPP	55 Neutral	$1.34B	-10.44	-23.41%	―	―	-37.07%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
LENZ	51 Neutral	$500.64M	-7.59	-28.78%	―	―	70.19%
ELVN	45 Neutral	$922.26M	-8.42	-25.43%	―	―	3.18%