On Thursday, Truist Securities adjusted its price target for Cargo Therapeutics (NASDAQ:CRGX), a biotechnology company, to $32 from the previous $34 while keeping a Buy rating on the stock. The change follows Cargo Therapeutics' announcement of its first-quarter results for 2024, which included updates on its financial guidance and clinical study progress.
The company reported that its cash resources are projected to last into 2026, providing a solid financial runway for the near future.
Additionally, Cargo Therapeutics shared an update on the Phase 1 study of CRG-022 Stanford at the European Hematology Association (EHA) 2024 conference. The data revealed a 52% two-year survival rate among patients, with no new progression events observed in patients who achieved a Complete Response.
Truist Securities anticipates that Cargo Therapeutics will complete enrollment for its pivotal trial in the fourth quarter of 2024. The results from this trial are expected in the first half of 2025. The firm believes that the outcomes from this study have the potential to transform Cargo Therapeutics from a developmental-stage company into a commercial entity.
The slight decrease in the price target to $32 reflects a cautious but optimistic outlook on the company's growth prospects based on the promising clinical data presented. Cargo Therapeutics continues to work on developing treatments with the hope of achieving significant milestones soon.
InvestingPro Insights
As Cargo Therapeutics (NASDAQ:CRGX) navigates through its development stages, the latest data from InvestingPro provides a nuanced view of the company's financial health and stock performance. With a market capitalization of $826.5 million, the company's valuation reflects its potential despite not being profitable over the last twelve months. Notably, Cargo Therapeutics holds more cash than debt on its balance sheet, a sign of financial prudence that could provide stability as the company progresses through its clinical trials.
Investors may also take interest in the company's stock performance, which has seen a significant return over the last week, with a 10.47% price total return. This uptick is part of a larger trend, with a 42.4% six-month price total return, indicating a strong market sentiment in the medium term. It's important to note that while analysts do not anticipate profitability this year, and net income is expected to drop, the company's liquid assets exceed its short-term obligations, suggesting it has the liquidity to manage its immediate financial needs.
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