Seres Therapeutics downgraded to Underweight from Neutral at JPMorgan

JPMorgan downgraded Seres Therapeutics (MCRB) to Underweight from Neutral. The firm notes that while it views the Vowst purchase by Nestle Health Science alleviating near-term pressure on the company as it extends its cash runway to Q4 of 2025 based on its current expectations and removes the debt overhang by allowing the company to retire its debt facility with Oaktree with the upfront proceeds, it also “finds it difficult” to find a near-term fundamental growth driver to help improved subdued sentiment on shares with the cohort 2 readout for SER-155 now achieved in patients undergoing allo-HSCT as well as a lack of definitive catalysts for the program, the analyst tells investors in a research note. Seres shares should be a “relative underperformer” as its pipeline remains a “show-me” story, the firm added.