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On Wednesday, Gritstone bio (NASDAQ:GRTS) received a new Outperform rating from JMP Securities, with a price target set at $4.00. The investment firm initiated coverage of the biotech company, highlighting the near-term potential of its lead personalized cancer vaccine candidate GRANITE. GRANITE’s upcoming Phase 2 results in metastatic colorectal cancer (MSS-CRC) are seen as pivotal in setting the tone for the company’s platforms.
Phase 2 readout, planned for the coming weeks, will focus on circulating tumor DNA (ctDNA) and progression-free survival (PFS) in approximately 50 frontline MSS-CRC subjects. Despite MSS-CRC’s historically low response to immunotherapy, JMP Securities has given the program a 50% chance of success. This cautious optimism is based on the clinical benefits demonstrated by GRANITE in Phase 1 trials for patients with late-line MSS-CRC.
In addition to the immediate focus on the MSS-CRC, JMP Securities sees potential in Gritstone’s EDGE platform, which could offer broader benefits in the long term. The company believes this represents a potential increase to Gritstone bio’s current valuation. The start of coverage also notes the promise of Gritstone’s mRNA self-amplification technology in the field of infectious diseases, citing evidence of its durability at low doses.
The announcement of the Market Outperform rating and $4.00 price target reflect the company’s confidence in Gritstone’s technology and its prospects in the competitive landscape of cancer immunotherapy and the treatment of infectious diseases. Investors will closely monitor the upcoming results of Phase 2, which could significantly influence the company’s stock performance.
InvestingPro Reviews
In light of JMP Securities’ new rating for Gritstone bio, a closer look at the company’s financial health and InvestingPro’s stock performance metrics provides additional context for investors. Despite the optimistic outlook for Gritstone’s GRANITE vaccine candidate, InvestingPro’s advice suggests some caution. Analysts have recently revised down its earnings for the coming period, and do not expect the company to be profitable this year. This aligns with concerns about Gritstone’s cash burn rate, which has been noted as fast. Those interested in a more detailed analysis can find more advice from InvestingPro on the company’s profile page at There are a total of 13 additional tips to explore, offering deeper insight for those considering an investment.
InvestingPro Data metrics reveal a market capitalization of $260.28 million and a negative price-to-earnings (P/E) ratio of -2.21, reflecting the company’s current lack of profitability. Revenue growth in the trailing twelve months as of Q3 2023 has declined by 45.47%, which may worry investors looking for growth potential. However, the stock has shown significant returns over the past week with an increase of 31.25%, and an impressive 110.0% return over the past three months, highlighting the recent positive momentum in the market.
Investors interested in a comprehensive analysis, including additional advice from InvestingPro, can use the coupon code PRONEWS24 for an additional 10% discount on an annual or semi-annual Pro and Pro+ subscription, which provides access to in-depth financial data and expert opinions that can help you make informed investment decisions.
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2024-02-28 11:07:00
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