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JMP lifts Benitec share price target on positive BB-301 data

EditorEmilio Ghigini
Published 04/22/2024, 05:12 AM

On Monday, Benitec BioPharma (NASDAQ:BNTC) shares saw its price target increased to $16.00 from the previous $10.00, while its stock rating remained at Market Outperform.

The adjustment by JMP Securities follows the reported significant improvements in the first patient treated with BB-301 for Oculopharyngeal Muscular Dystrophy (OPMD).

The firm's decision to raise the price target is based on the treatment's positive impact on functional, physiological, and patient-reported outcomes. This has led to an increase in the probability of success (PoS) for BB-301, which has been adjusted to 45% from the previous 30%.

Benitec BioPharma is being recognized for its advancements in the treatment of OPMD, a rare genetic condition that affects muscles in the eyes and throat, leading to difficulties in swallowing and vision problems. The improvements observed in the treated patient signal a promising development for the company's therapy.

JMP Securities has reiterated its confidence in Benitec BioPharma by maintaining the Market Outperform rating. The firm anticipates further progress as BB-301 is administered to additional patients, which could potentially affirm the therapy's efficacy and impact on OPMD treatment.

InvestingPro Insights

In light of JMP Securities' revised price target for Benitec BioPharma, current metrics from InvestingPro provide a deeper financial perspective on the company's standing. With a market capitalization of $18.12 million, Benitec BioPharma is a niche player in the biopharmaceutical industry. Despite the positive clinical developments, the company holds a negative P/E ratio of -0.55, indicating that it is not currently profitable. Moreover, the company's revenue for the last twelve months as of Q2 2024 stands at a modest $0.06 million, with a significant gross profit margin of 272.13%, reflecting the cost efficiency of its operations, albeit on a very small scale.

Two InvestingPro Tips that are particularly relevant given the context of the article include: Benitec BioPharma's liquid assets exceed short-term obligations, which suggests a degree of financial stability, and the company is quickly burning through cash, which investors should consider when evaluating the company's long-term sustainability. Additionally, with a noteworthy 42.36% return over the last week, the stock has shown significant recent volatility, which could be of interest to traders and investors alike.

For those interested in a more comprehensive analysis, there are additional InvestingPro Tips available, which can be accessed through the company's specific page on InvestingPro. To enhance your investment strategy with these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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