Werewolf Therapeutics: Wedbush Reiterates Outperform, PT Drops to $6 from $8

Werewolf Therapeutics: Wedbush Reiterates Outperform, PT Drops to $6 from $8

Wedbush Securities has reiterated its "Outperform" rating on Werewolf Therapeutics, Inc. (Nasdaq: HOWL) while lowering its price target to $6 from $8. The revised price target reflects recent developments in the company's clinical pipeline and financial performance.

Werewolf Therapeutics reported its first-quarter 2025 financial results, highlighting a cash position of $92.0 million as of March 31, 2025, compared to $111.0 million as of December 31, 2024. The company expects its existing cash and cash equivalents to fund operational expenses and capital expenditure requirements into the fourth quarter of 2026 [1].

The company continues to make progress in its clinical trials. The Phase 1/1b clinical trial of WTX-124 is on track to share interim data and interact with the FDA in the second half of the year. Additionally, Werewolf has initiated a Phase 1b/2 clinical trial of WTX-330 to explore antitumor activity and optimize the exposure of its IL-12 INDUKINE molecule in the tumor microenvironment [1].

Werewolf's R&D expenses for the first quarter of 2025 were $13.1 million, up from $12.9 million in the same period in 2024. General and administrative expenses were $4.9 million, down from $5.0 million in the same period in 2024. The company reported a net loss of $18.1 million for the first quarter of 2025, up from $16.2 million in the same period in 2024 [1].

Wedbush analysts noted that the company's progress in clinical trials and its pipeline of T cell engagers, including WTX-330 and WTX-124, continue to be key drivers for the stock. However, the lower price target reflects the company's current valuation and the need for additional clinical data to support the long-term growth prospects.

References:
[1] https://www.biospace.com/press-releases/werewolf-therapeutics-reports-first-quarter-2025-financial-results-and-provides-business-update