JMP maintains Arbutus stock $5 target with Market Outperform rating
Investing.com
Published Mar 31, 2025 06:14AM ET
On Monday, JMP Securities analyst Roy Buchanan maintained a Market Outperform rating on Arbutus Biopharma (NASDAQ:ABUS) stock, with a steady price target of $5. This aligns with the broader analyst consensus, as revealed by InvestingPro data, showing price targets ranging from $4.00 to $6.97. Buchanan's endorsement of the stock comes in the wake of the company's recent announcement of significant organizational changes aimed at reducing costs and streamlining operations.
Arbutus Biopharma concluded the year 2024 with a solid cash position of $123 million, maintaining strong liquidity with a current ratio of 8.15 and minimal debt-to-equity ratio of 0.06. In line with this strategy, the company has taken several decisive steps including the discontinuation of its at-the-market equity facility, a substantial workforce reduction by 57% to 19 employees, and the halting of research and development activities.
These measures are expected to lead to a considerable decrease in the company's cash burn for the year 2025 compared to the previous year. Arbutus is also preparing for a one-time restructuring charge estimated between $11 million and $13 million, which will be accounted for in the first quarter of 2025.
Buchanan's analysis reflects these developments, as he has updated JMP Securities' financial estimates for Arbutus Biopharma. The analyst's commentary points to a recognition of the company's efforts to realign its financial and operational structure, which is anticipated to improve its financial standing in the long term.
In other recent news, Arbutus Biopharma Corporation has initiated significant changes in its leadership and board structure. Lindsay (NYSE:LNN) Androski has been appointed as the new Chief Executive Officer, succeeding interim CEO Michael J. McElhaugh. The company also announced a complete reshaping of its board, introducing four new directors while all previous members have departed. This restructuring aims to refocus Arbutus's efforts on advancing its pipeline and maximizing contributions to Lipid Nanoparticle (LNP) delivery technology. In related developments, Arbutus and Genevant Sciences have filed international lawsuits against Moderna (NASDAQ:MRNA), alleging patent infringement related to LNP technology used in Moderna's Spikevax® vaccine. The legal actions have been launched in 30 countries, with claims that Moderna's products utilize LNP technology without proper licensing. The lawsuits are part of ongoing enforcement proceedings in the U.S., with a jury trial scheduled for September 2025. Arbutus, in collaboration with Genevant, continues to leverage its LNP technology while advancing treatments for chronic hepatitis B.
Get The News You Want
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.