Baird has maintained an Outperform rating on Calidi Biotherapeutics Inc (NYSE: CLDI) but significantly reduced the target price from $20.00 to $2.50.
The adjustment follows the firm's update to its financial model based on second-quarter earnings for the year 2024.
Calidi Biotherapeutics made a 1-for-10 reverse stock split as part of its strategic initiatives to enhance shareholder value.
The company has raised approximately $2.1 million through the exercise of Series B and C warrants and has set terms for a public offering aiming to raise an estimated $6.1 million. These funds will support Calidi Biotherapeutics' clinical and pre-clinical programs, operational expenses, and working capital needs.
On the personnel front, Dr. George E. Peoples, a renowned cancer immunotherapy expert, has joined the Board of Directors. In terms of research, the company revealed new data at the American Association for Cancer Research Annual Meeting 2024, focusing on the role of stem cells in enhancing the effectiveness of antitumor virotherapies. Ladenburg Thalmann & Co, Inc. served as the exclusive placement agent for these transactions.
InvestingPro Insights
Following Baird's new target price for Calidi Biotherapeutics Inc (NYSE:CLDI), real-time data from InvestingPro provides additional context to the company's current financial health. With a market capitalization of just $9.34 million and a concerning P/E ratio of -0.16, the financial metrics underscore the challenges faced by the company. The adjusted P/E ratio for the last twelve months as of Q2 2024 stands at -0.38, reflecting a market that is not confident in the company's earnings potential.
InvestingPro Tips highlight several cautionary points for investors considering CLDI. The company operates with a significant debt burden and is quickly burning through cash, which may explain the negative return on assets of -279.89%. Moreover, analysts do not anticipate the company will be profitable this year, and the stock has experienced a steep decline, with a 1 year price total return of -98.6% as of the end of 2024.
Despite these headwinds, the analyst's Outperform rating suggests that there may be potential for the stock to recover relative to the market. For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with a total of 13 InvestingPro Tips available on their platform (https://www.investing.com/pro/CLDI), which could help in making a more informed decision regarding Calidi Biotherapeutics' prospects.
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