HC Wainwright Cuts Foghorn Therapeutics (NASDAQ:FHTX) Price Target to $5.00

Key Points

• HC Wainwright cut Foghorn Therapeutics’ price target from $13 to $5 while maintaining a “buy” rating, implying 71.23% upside from the prior close.
• Analyst sentiment has weakened, with BTIG, Citigroup and TD Cowen downgrading the stock; the consensus rating is now “hold” with an average target price of $9.17.
• FHTX shares opened at $2.92 after a sharp decline, as Foghorn restructures following the end of its Eli Lilly collaboration, including a roughly 40% workforce reduction and prioritization of its wholly owned pipeline.

Foghorn Therapeutics (NASDAQ:FHTX - Get Free Report) had its target price dropped by research analysts at HC Wainwright from $13.00 to $5.00 in a report issued on Friday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. HC Wainwright's target price would suggest a potential upside of 71.23% from the stock's previous close.

Other equities analysts have also recently issued reports about the stock. BTIG Research cut shares of Foghorn Therapeutics from a "buy" rating to a "neutral" rating in a research note on Thursday. Stifel Nicolaus set a $5.00 price target on Foghorn Therapeutics in a research note on Thursday. Wall Street Zen upgraded Foghorn Therapeutics from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Citigroup cut Foghorn Therapeutics from a "market outperform" rating to a "market perform" rating in a research note on Thursday. Finally, TD Cowen downgraded Foghorn Therapeutics to a "hold" rating in a report on Thursday. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Foghorn Therapeutics currently has a consensus rating of "Hold" and an average target price of $9.17.

Foghorn Therapeutics Stock Down 18.2%

Shares of FHTX stock opened at $2.92 on Friday. The firm has a market cap of $173.39 million, a price-to-earnings ratio of -2.98 and a beta of 3.01. Foghorn Therapeutics has a 12 month low of $1.79 and a 12 month high of $7.61. The stock has a 50-day moving average price of $5.17 and a 200 day moving average price of $4.84.

Foghorn Therapeutics (NASDAQ:FHTX - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.10) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.24) by $0.14. The business had revenue of $16.07 million for the quarter, compared to analyst estimates of $6.80 million. Sell-side analysts predict that Foghorn Therapeutics will post -0.81 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Foghorn Therapeutics

Hedge funds have recently bought and sold shares of the company. Diversified Trust Co bought a new position in shares of Foghorn Therapeutics during the first quarter worth $52,000. Canada Pension Plan Investment Board bought a new stake in shares of Foghorn Therapeutics in the 2nd quarter valued at $122,000. Bank of America Corp DE acquired a new stake in Foghorn Therapeutics during the 2nd quarter worth $127,000. GSA Capital Partners LLP acquired a new stake in Foghorn Therapeutics during the 2nd quarter worth $144,000. Finally, Deutsche Bank AG bought a new position in Foghorn Therapeutics during the second quarter worth about $178,000. 61.55% of the stock is currently owned by institutional investors and hedge funds.

Foghorn Therapeutics News Summary

Here are the key news stories impacting Foghorn Therapeutics this week:

• Positive Sentiment: Foghorn plans to concentrate resources on its wholly owned pipeline, including selective EP300 and CBP degraders, an oral immunology and inflammation program, and its induced-proximity platform. Management expects the restructuring and pipeline prioritization to extend the company’s cash runway into the second half of 2029. Foghorn Therapeutics Provides Update on FHD-909 and Strategic Priorities
• Neutral Sentiment: Trading in FHTX was temporarily halted for “news pending,” while trading volume surged far above its normal average as investors assessed the partnership and pipeline changes. Foghorn Therapeutics Pivots Pipeline after Ending Eli Lilly Deal
• Negative Sentiment: Following a review of Phase 1 dose-escalation data, Foghorn and Lilly decided not to move FHD-909 into clinical development expansion. Lilly will also not advance the selective SMARCA2 degrader program, sharply reducing the near-term value of the collaboration. Foghorn Therapeutics Halts FHD-909 Development After Phase 1 Clinical Data Review
• Negative Sentiment: The companies do not plan future collaborations, ending a relationship that had provided Foghorn with a large pharmaceutical partner and potential funding or milestone support. Foghorn to Slash 40% of Jobs as Lilly Cancer Partnership Falls Apart
• Negative Sentiment: Foghorn will reduce its workforce by approximately 40% as it restructures around the remaining pipeline. Although the cuts are intended to preserve cash, they underscore the setback to the company’s clinical strategy and contributed to the sharp decline in FHTX. Foghorn Therapeutics Plunges as Eli Lilly Terminates Partnership

Foghorn Therapeutics Company Profile

Foghorn Therapeutics Inc is a clinical-stage biotechnology company headquartered in Cambridge, Massachusetts. The company develops medicines designed to regulate gene expression by targeting the chromatin regulatory system, a network of proteins and complexes that controls how genetic information is organized and used within cells.

Foghorn's discovery platform, known as Gene Traffic Control, is intended to identify drug targets within chromatin-remodeling complexes and develop selective small-molecule therapies.

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