Cargo Therapeutics downgraded to Hold at Truist after Firi-cel disappointment

Truist downgraded Cargo Therapeutics (CRGX) to Hold from Buy with a price target of $7, down from $32, calling the company’s announcement on Firi-cel to be “very unfortunate and disappointing.” The firm is surprised at how the Phase 2 FIRCE-1 study deviated so much from the “stellar” Phase 1 data and while it is “rooting for the mgmt team to make CRGX a remarkable come-back story,” acknowledges that the company will need time to generate data with its next-gen asset CRG-023. Given that, the firm thinks the stock will trade sideways in the near term.