CAPR Stock Slumps But Wall Street Reiterates Optimism For Deramiocel Approval

• Roth Capital analyst Boobalan Pachaiyappan recommended buying shares of Capricor Therapeutics on Friday's selloff.
• B. Riley, meanwhile, raised the firm's price target on CAPR to $63 from $50 and kept a ‘Buy’ rating on the shares.
• The Food and Drug Administration has lifted the previously issued Complete Response Letter and resumed the review of the Biologics License Application for Deramiocel with a decision expected by August 22.

Shares of Capricor Therapeutics (CAPR) fell 9% on Friday after the company reported a wider-than-expected Q4 loss but Wall Street analysts raised their price targets on the stock over hopes for an approval of the company’s lead candidate.

On the company’s fourth-quarter (Q4) earnings call, CEO Linda Marban rejected the possibility that the Deramiocel therapy could receive only a conditional regulatory decision. The U.S. Food and Drug Administration is now expected to rule on Capricor's application for Deramiocel in the treatment of Duchenne Muscular Dystrophy by August 22, 2026, after reversing course on its previous rejection. DMD is a genetic disorder characterized by muscle degeneration.

Wall Street Take Aways

Roth Capital analyst Boobalan Pachaiyappan recommended buying shares of Capricor Therapeutics on today's selloff. The 8% pullback is a "transient, healthy and short-lived market correction" following the rally post FDA acceptance of Capricor's application of Deramiocel for the treatment of Duchenne muscular dystrophy, the analyst told investors in a research note. Roth would be buying today's "dislocation" and expects the share price to move towards its price target of $41. The firm has a ‘Buy’ rating on Capricor.

B. Riley, meanwhile, raised the firm's price target on CAPR to $63 from $50 and kept a ‘Buy’ rating on the shares. The analyst said that its confidence has increased in a potential smooth approval path for Deramiocel ahead of the August 22 decision date, with shares expected to build into the decision as investors digest additional dataset, the analyst told investors in a research note.

Piper Sandler raised the firm's price target on CAPR to $58 from $45 and kept an ‘Overweight’ rating on the shares. The firm noted Capricor ended 2025 with cash of $318 million to fund operations through 2027. The FDA has lifted the previously issued Complete Response Letter and resumed the review of the Biologics License Application for Deramiocel with a decision expected by August 22. Optimistically, the label could include the broad Duchenne muscular dystrophy population, not just DMD cardiomyopathy, Piper argues.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around CAPR stock remained within the ‘extremely bullish’ territory over the past 24 hours, while message volume remained at ‘extremely high’ levels.

CAPR stock has gained 138% over the past 12 months. 

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