Rodman & Renshaw initiates Quince Therapeutics stock with buy rating

Investing.com reports that Rodman & Renshaw has initiated coverage on Quince Therapeutics Inc. (NASDAQ: QNCX) with a Buy rating, setting an ambitious target price of $70.00 per share. This implies a potential 130% upside from the current trading price of $30.15, which values the company at a mere $30.7 million market cap.

Rodman & Renshaw believes Quince's LAM-001 therapy, a novel once-daily dry-powder inhaler for mTOR inhibition, holds significant promise for pulmonary diseases such as PH-ILD, BOS, and SAPH. The firm notes that Phase 2 data for the BOS indication is anticipated in Q1 2027, while Phase 2b data for PH-ILD is expected in Q1 2028.

The company is currently holding a robust $116 million in cash, comfortably surpassing its debt and boasting an impressive current ratio of 14.52. However, the cash is being rapidly depleted, with levered free cash flow at -$47 million. Despite this, Rodman & Renshaw remains confident that positive Phase 2 trial results could propel the stock to new heights.

Recent developments include a special shareholders meeting to vote on raising more shares and converting preferred stock, potentially reshaping the company's control structure. Additionally, Quince's stock has received a Market Outperform rating from Citizens, following its merger with Orphai Therapeutics, and an Overweight rating from Cantor Fitzgerald, both citing the company's promising pipeline. Moreover, Quince has established a Scientific Advisory Board, bolstering its development efforts for LAM-001.