Leerink Partnrs Has Pessimistic View of MREO Q3 Earnings

Key Points

• Leerink Partners has reduced its Q3 earnings per share (EPS) forecast for Mereo BioPharma Group to $0.04, down from a prior estimate of $0.10.
• Mereo BioPharma Group's stock was dropped from a "hold" to a "sell" rating by Wall Street Zen, while Needham & Company set a price target of $5.00 with a "buy" rating.
• The company's last earnings report showed a miss on revenue expectations, with the actual revenue of $0.50 million compared to the estimated $7.80 million.

Mereo BioPharma Group plc - Sponsored ADR (NASDAQ:MREO - Free Report) - Stock analysts at Leerink Partnrs reduced their Q3 2025 earnings estimates for shares of Mereo BioPharma Group in a research note issued on Tuesday, August 12th. Leerink Partnrs analyst J. Schwartz now expects that the company will earn $0.04 per share for the quarter, down from their prior estimate of $0.10. The consensus estimate for Mereo BioPharma Group's current full-year earnings is ($0.03) per share. Leerink Partnrs also issued estimates for Mereo BioPharma Group's FY2025 earnings at $0.05 EPS and FY2026 earnings at $0.05 EPS.

Mereo BioPharma Group (NASDAQ:MREO - Get Free Report) last released its earnings results on Tuesday, August 12th. The company reported ($0.02) earnings per share for the quarter, missing the consensus estimate of ($0.01) by ($0.01). The company had revenue of $0.50 million during the quarter, compared to analysts' expectations of $7.80 million.

A number of other equities research analysts also recently issued reports on the company. Wall Street Zen raised Mereo BioPharma Group from a "sell" rating to a "hold" rating in a research report on Saturday. Needham & Company LLC set a $5.00 target price on shares of Mereo BioPharma Group and gave the stock a "buy" rating in a research report on Thursday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating and four have given a Buy rating to the company. According to MarketBeat.com, Mereo BioPharma Group presently has a consensus rating of "Buy" and an average price target of $7.20.

Mereo BioPharma Group Stock Performance

NASDAQ MREO traded down $0.0250 during trading hours on Friday, hitting $1.6150. 720,082 shares of the company's stock were exchanged, compared to its average volume of 1,746,266. The business's 50 day moving average is $2.16 and its 200-day moving average is $2.35. Mereo BioPharma Group has a 12-month low of $1.47 and a 12-month high of $5.02. The firm has a market capitalization of $256.79 million, a P/E ratio of -23.07 and a beta of 0.47.

Hedge Funds Weigh In On Mereo BioPharma Group

Hedge funds have recently modified their holdings of the stock. Ameriprise Financial Inc. lifted its stake in shares of Mereo BioPharma Group by 187.9% in the 4th quarter. Ameriprise Financial Inc. now owns 94,456 shares of the company's stock valued at $331,000 after purchasing an additional 61,642 shares during the last quarter. GAMMA Investing LLC boosted its stake in Mereo BioPharma Group by 109.5% during the first quarter. GAMMA Investing LLC now owns 18,855 shares of the company's stock worth $42,000 after buying an additional 9,854 shares in the last quarter. XTX Topco Ltd acquired a new stake in Mereo BioPharma Group during the fourth quarter worth $133,000. Walleye Capital LLC acquired a new position in Mereo BioPharma Group during the fourth quarter worth $454,000. Finally, Tema Etfs LLC acquired a new position in Mereo BioPharma Group during the fourth quarter worth $3,117,000. 62.83% of the stock is owned by institutional investors and hedge funds.

Mereo BioPharma Group Company Profile

Mereo BioPharma Group plc, a biopharmaceutical company, develops and commercializes therapeutics for the treatment of oncology and rare diseases in the United Kingdom, the United States, and internationally. It develops Etigilimab (MPH-313), an antibody T-cell immunoreceptor with Ig and ITIM domains, which is in Phase 1b clinical trial for the treatment of tumors.