Fate Therapeutics' Price Target Cut to $2.50 by Wells Fargo

Wells Fargo has lowered the price target for Fate Therapeutics (FATE) to $2.50, a 37.5% decrease from the previous target of $4.00. The analyst has maintained an "Equal-Weight" rating. Historically, other analysts have also shared their insights on the company, with a consensus recommendation of "Outperform" and an average target price of $5.19, representing a 454.19% upside from the current price of $0.94.

Wells Fargo has lowered its price target for Fate Therapeutics (FATE) to $2.50, a 37.5% decrease from the previous target of $4.00. The analyst has maintained an "Equal-Weight" rating. Historically, other analysts have also shared their insights on the company, with a consensus recommendation of "Outperform" and an average target price of $5.19, representing a 454.19% upside from the current price of $0.94 [1].

The decision to lower the price target comes on the heels of Fate Therapeutics' second-quarter earnings report, where the company reported a net loss of $0.29 per share, beating the consensus estimate of $0.35 per share. The company ended the quarter with $248.9 million in cash, and InvestingPro analysis shows the company maintains a strong current ratio of 8.81, with cash reserves exceeding debt obligations [1].

Fate Therapeutics has implemented a tactical operations plan that includes a 12% reduction in employee headcount and additional cost-saving measures across the organization. These changes are designed to extend the company’s financial runway through year-end 2027, compared to its previous projection of funding through the first half of 2027 [1].

Wells Fargo adjusted its earnings per share estimates for Fate Therapeutics to losses of $1.11 for 2025 and $1.09 for 2026, compared to previous estimates of $1.29 and $1.33 losses, respectively. The company’s new operational strategy prioritizes its iPSC-derived CAR-T programs and aims to enable the achievement of key clinical and collaboration milestones while maintaining sufficient funds to support operations beyond those milestones [1].

In other recent news, Fate Therapeutics presented significant clinical data for its FT819 therapy in lupus patients at the European Alliance of Associations for Rheumatology (EULAR) 2025 Congress in Barcelona. The data revealed that all three patients with severe lupus nephritis who received the treatment following a fludarabine-free conditioning regimen achieved Primary Efficacy Renal Response. Additionally, the first patient to reach a one-year follow-up continues in drug-free remission, showcasing promising results [1].

The company’s ongoing Phase 1 trial continues to assess the safety and activity of FT819 in patients with moderate-to-severe systemic lupus erythematosus. Despite these developments, H.C. Wainwright and Needham have maintained their Neutral and hold ratings on the company’s stock, respectively. Meanwhile, BofA Securities lowered its price target for Fate Therapeutics to $2.20, maintaining a Neutral rating [1].

Fate Therapeutics is expected to show a fall in quarterly revenue when it reports results on August 11 (estimated) for the period ending June 30, 2025. The San Diego California-based company is expected to report an 85.1% decrease in revenue to $1.011 million from $6.77 million a year ago, according to the mean estimate from 10 analysts [2].

The stock price for Fate Therapeutics fell by -5.31% on Thursday, August 14, 2025, from $1.13 to $1.07. The stock lies in the middle of a very wide and falling trend in the short term and further fall within the trend is signaled [3].

References:
[1] https://ca.investing.com/news/analyst-ratings/wells-fargo-lowers-fate-therapeutics-stock-price-target-to-250-on-cost-cuts-93CH-4154685
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3U0211:0-fate-therapeutics-inc-expected-to-post-a-loss-of-34-cents-a-share-earnings-preview/
[3] https://stockinvest.us/stock/FATE