Foghorn Therapeutics (FHTX) PT Lowered to $5 at Stifel

Stifel analyst Laura Prendergast lowered the price target on Foghorn Therapeutics (NASDAQ: FHTX) to $5.00 (from $12.00) while maintaining a Buy rating.

The analyst comments "This morning FHTX announced that they and LLY will not advance SMARCA2 inhibitor (FHD-909) or the selective SMARCA2 degrader program - see PR here. FHTX plans to focus resources on wholly owned pipeline, including: (1) a selective EP300 degrader (IND in later 2027), (2) a novel (target undisclosed) oral I&I program (IND + FPI likely by late 2027), (3) a selective CBP degrader (IND likely not until 2028), and (4) induced proximity platform (BD focus). Pipeline prioritization and organizational changes expected to extend cash runway into 2H29, including a ~40% workforce reduction. We make no change to our Buy rating but lower our TP to $5 (previously $12). We have removed FHD-909 from our model and value FHTX on a sum-of-the-parts basis (see within for SOTP), ascribing present value to active wholly owned programs plus net cash (~$138M YE26 estimate), rather than a DCF, given lack of clarity on near-term revenue/TAM/ timing."

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