Entrada Therapeutics' Price Target Cut to $17 by Roth Capital, Buy Rating Maintained

Roth Capital lowered Entrada Therapeutics' price target to $17 from $21 and maintained a Buy rating. The firm remains optimistic about the company's robust cash position and multiple clinical data readouts in 2026, despite negative sentiment driven by a lack of value-driving data catalyst events in 2025.

Entrada Therapeutics (TRDA), a biotechnology company specializing in intracellular therapies for rare neuromuscular diseases, reported its second quarter (Q2) 2025 financial results on August 6, 2025. The company reported a GAAP loss per share of $(1.04), significantly wider than the $(0.85) GAAP loss per share analysts had expected [1]. GAAP revenue fell to $2.0 million, missing the $9.65 million GAAP consensus estimate and dropping 97.9% year-over-year in collaboration revenue [1].

Operating expenses rose by 18.2%, with cash reserves totaling $354.0 million as of June 30, 2025, providing a funding runway into the second quarter of 2027 [1]. The company highlighted clinical and regulatory advancements, and maintained that its $354.0 million in cash, cash equivalents, and marketable securities as of June 30, 2025, will fund operations for at least two more years [1].

During the quarter, Entrada made key clinical progress, particularly with its lead Duchenne muscular dystrophy (DMD) program ENTR-601-44, which is based on its EEV Platform. The company dosed the first patient in its global Phase 1/2 multiple ascending dose clinical trial (ELEVATE-44-201), marking a shift from preclinical to patient testing [1]. Multiple clinical sites were activated in the United Kingdom and European Union, and the company reported progress preparing for new regulatory submissions for other DMD candidates [1].

Collaboration revenue (GAAP) plunged to $2.0 million in Q2 2025 from $94.7 million in Q2 2024, attributed to the substantial completion of its major partnership research plan with Vertex Pharmaceuticals [1]. Research and development expenses (GAAP) grew to support a broader pipeline and higher personnel costs, including increased stock-based compensation [1]. General and administrative costs increased in line with these efforts [1]. Cash, cash equivalents, and marketable securities (GAAP) fell by $66.0 million during the first half of 2025, ending at $354.0 million as of June 30, 2025 [1].

Roth Capital recently lowered Entrada Therapeutics' price target to $17 from $21 and maintained a Buy rating, noting the company's robust cash position and multiple clinical data readouts in 2026 [2]. Despite negative sentiment driven by a lack of value-driving data catalyst events in 2025, Roth Capital remains optimistic about Entrada's long-term prospects.

References:
[1] https://www.aol.com/finance/entrada-trda-q2-revenue-drops-232122515.html
[2] https://www.nasdaq.com/articles/entrada-therapeutics-inc-trda-reports-q2-loss-lags-revenue-estimates