Wells Fargo analyst Yanan Zhu maintained a Hold rating on Fate Therapeutics (FATE – Research Report) yesterday and set a price target of $4.00.
Yanan Zhu has given his Hold rating due to a combination of factors surrounding Fate Therapeutics’ current financial and developmental standing. The company’s main opportunity lies in the development of treatments for autoimmune diseases, particularly with their FT819 program. However, the recent financial results showed a slight miss in earnings per share, and while the cash reserves are expected to support operations through the end of 2026, this does not provide immediate growth prospects.
Furthermore, the adjustment of the price target from $5 to $4 reflects a reassessment of the probability of success for the FT819 study, which is still in its early phases. The ongoing clinical trials and recent protocol amendments to include additional autoimmune indications are promising, but they also introduce uncertainty and potential delays. These elements contribute to a cautious outlook, justifying the Hold rating as investors await more definitive data and progress in the pipeline development.
FATE’s price has also changed dramatically for the past six months – from $3.550 to $0.905, which is a -74.51% drop .