Foghorn stock down as Lilly exits collaboration (FHTX:NASDAQ)

Evercore ISI downgraded Foghorn Therapeutics (FHTX) to In Line from Outperform, cutting its price target to $3.00 from $14.00 after the discontinuation of its lead clinical program, FHD-909. The stock is down 64% year-to-date, trading at $1.95. The firm removed FHD-909 from its model, reduced operating expenses, and estimates $131 million in net cash by year-end 2026. Other analysts have also adjusted their ratings and price targets following the drug program's halt.

Foghorn Therapeutics' stock plunged 31.2% to $2.01 after it and Eli Lilly ended their collaboration due to insufficient clinical efficacy in a Phase 1 trial. Analysts downgraded the stock and cut price targets, citing the loss of a key partnership and a 40% workforce reduction. The company's pipeline is now entirely preclinical, raising concerns about its future.

Analysts downgraded several companies: Foghorn Therapeutics (FHTX) to Neutral, First Busey (BUSE) to Neutral with a $30 target, AST SpaceMobile (ASTS) to Neutral with a $65 target, AtriCure (ATRC) to Hold with a $57 target, and Equity Bancshares (EQBK) to Neutral with a $52 target. ASTS closed at $57.04 on Thursday.

Wedbush downgraded Foghorn Therapeutics (FHTX) to Neutral, lowering its price target to $2.00. The move follows the discontinuation of FHD-909, a drug in collaboration with Eli Lilly, due to Phase 1 data. Foghorn is cutting 40% of its workforce and realigning operations. Other analysts have also lowered price targets, though some maintain positive ratings.

H.C. Wainwright cut Foghorn Therapeutics' (FHTX) price target to $5 from $13 after it halted the FHD-909 program due to lack of efficacy. FHTX stock is down 16.57% this week. The company reduced its workforce by 40% and expects cash runway into 2H 2029. Multiple analysts downgraded FHTX, with price targets now ranging from $2 to $5.

Guggenheim cut Foghorn Therapeutics' (FHTX) price target to $5.00 from $12.00, maintaining a Buy rating, after the company discontinued its lead drug program FHD-909. Foghorn and partner Eli Lilly halted the program due to insufficient efficacy in Phase 1 trials. The stock is down 16.6% over the past week, trading at $2.92. Analysts have mixed reactions, with some downgrading and others maintaining Buy ratings with adjusted targets.