Rapt Therapeutics Get A Bullish Recommendation On ‘Significant Opportunity’ For Allergy Drug Candidate: Retail Worries About Cash Position

Clear Street initiated coverage of Rapt Therapeutics with a Buy rating and set a $3 price target, as the research firm has “strong conviction” in RPT904b as the company's candidate for the treatment of food allergy and chronic spontaneous urticaria (CSU).

Shares of Rapt Therapeutics closed flat at $1.02 on Thursday, but rose 7.8% to $1.10 in after-hours trading.

Clear Street said that RPT904b represents a "potentially best-in-class anti-IgE antibody" that rivals Xolair, the treatment jointly offered by Roche and Novartis.

The firm also noted that Rapt shares have declined 76% over the past 12 months, compared to a 12% drop in the XBI biotech ETF, attributing the drop to an unrelated asset discontinuation. 

According to Clear Street, this has created a "significant opportunity" for investors.

According to Rapt Therapeutics, RPT904b is a half-life extended monoclonal antibody designed to bind free human IgE, a central player in allergic inflammatory diseases. 

In early-stage trials, the candidate has shown extended pharmacokinetics and pharmacodynamics relative to Xolair, potentially enabling dosing every 8 to 12 weeks, compared to 2 to 4 weeks for omalizumab. 

It also aims to treat patients with high IgE levels or body weights who may not qualify for existing anti-IgE therapies.

On May 22, UBS reduced its price target for Rapt Therapeutics to $1 from $2, while keeping its ‘Neutral’ rating unchanged. 

The research note from UBS said that the in-licensing of RPT904 as an omalizumab "bio-better" stands as a principal long-term asset for Rapt.

UBS raised concerns about the short-term visibility of the addressable market but acknowledged that, although food allergy represents significant commercial potential, identifying the specific patient group in which RPT904 will show meaningful clinical results remains challenging.

Meanwhile, H.C. Wainwright launched coverage for Rapt with a ‘Buy’ rating and established a $6 price target on the same day. 

The research firm highlighted RPT904 as an IgE blocker that follows a commercially validated approach to minimize target risk, referencing the proven effectiveness of omalizumab in treating food allergy, as well as asthma and chronic spontaneous urticaria cases.

On Stocktwits, retail sentiment was ‘bearish’ amid ‘low’ message volume.

A user expressed worries about the biotech’s cash runway.

The stock has declined 37.4% so far in 2025.