Tscan Therapeutics stock rating cut to neutral by Wedbush on strategy shift

Wedbush has downgraded Tscan Therapeutics Inc (NASDAQ:TCRX) stock rating to Neutral from Outperform, citing a strategic shift in the company’s approach. The reduction in price target to $1.00 from $5.00 follows the company’s announcement of a strategic reorganization, which includes a significant reduction in headcount and elimination of internal manufacturing.

This shift has placed the company’s focus on two preclinical in vivo-engineered TCR-T programs targeting PRAME and MAGE-A4, rather than continuing with the Phase 3 ALLOHA-2 study of TSC-101. The restructuring is expected to extend the company’s cash runway into the fourth quarter of 2027, but it has also resulted in the company burning through cash at an alarming rate, with a negative free cash flow yield of -262%. Despite these challenges, Wedbush believes the stock may be undervalued at current levels.

Brief written by urgent.news from Investing.com's own syndicated text. Machine-written — may contain errors; check the original before relying on it.