Analysts at Evercore ISI have initiated coverage on shares of Upstream Bio (NASDAQ: UPB), issuing an outperform rating along with a price target of $40.00. This announcement, made on October 14, 2023, underscores the growing interest in the clinical-stage biotechnology company.
Other research firms have also offered insights on Upstream Bio. Truist Financial launched coverage the same day, assigning a “buy” rating and a higher price target of $47.00. In contrast, Weiss Ratings reissued a “sell (d-)” rating on October 8, 2023. Overall, two analysts recommend buying the stock, while one suggests selling. According to data from MarketBeat, the stock currently holds an average rating of “hold” with a consensus target price of $43.50.
Quarterly Earnings Performance
Upstream Bio recently reported its quarterly earnings on November 5, 2023. The company posted an earnings per share (EPS) of ($0.63), exceeding analysts’ expectations of ($0.78) by $0.15. The company’s revenue for the quarter was $0.68 million, slightly above the consensus estimate of $0.65 million.
Despite these positive indicators, Upstream Bio recorded a negative return on equity of 28.71% and a troubling negative net margin of 4,366.77%. Analysts project that the company will report an average EPS of ($4.30) for the current year.
Institutional Investment Activity
Recent changes in institutional holdings reflect a growing confidence in Upstream Bio. The New York State Common Retirement Fund acquired a new position in the company during the first quarter, valued at $29,000. Additionally, BNP Paribas Financial Markets increased its stake by an impressive 229.8%, bringing its total to 3,097 shares, worth approximately $34,000.
Other notable increases include Legal & General Group Plc, which grew its position by 83.0%, now holding 3,174 shares valued at $35,000, and CWM LLC, which boosted its holdings by 107.5%, owning 3,312 shares worth about $36,000. Ameritas Investment Partners Inc. also raised its position significantly, now owning 3,558 shares valued at $39,000.
Upstream Bio, based in the United States, focuses on developing treatments for inflammatory diseases, particularly severe respiratory disorders. Its key product, verekitug, is a monoclonal antibody that targets and inhibits the thymic stromal lymphopoietin receptor. The company is also developing therapies aimed at severe asthma, chronic rhinosinusitis with nasal polyps, and chronic obstructive pulmonary disease.
As analysts continue to weigh in on Upstream Bio’s performance and prospects, the upcoming months will be critical for the company as it navigates both market challenges and opportunities in the biotechnology sector.
