BTIG Research Has Lowered Expectations for Mereo BioPharma Group (NASDAQ:MREO) Stock Price

Mereo BioPharma Group (NASDAQ:MREO) had its price objective lowered by research analysts at BTIG Research from $6.00 to $1.00 in a research note issued on Monday, MarketBeat Ratings reports. The brokerage currently has a “buy” rating on the stock. BTIG Research’s price target points to a potential upside of 169.91% from the company’s current price.

Other equities analysts have also recently issued reports about the company. Needham & Company LLC reaffirmed a “buy” rating and issued a $5.00 target price on shares of Mereo BioPharma Group in a report on Monday, December 22nd. Weiss Ratings reiterated a “sell (d-)” rating on shares of Mereo BioPharma Group in a research report on Wednesday, October 8th. Cantor Fitzgerald reissued an “overweight” rating on shares of Mereo BioPharma Group in a report on Monday. Finally, Zacks Research upgraded Mereo BioPharma Group from a “strong sell” rating to a “hold” rating in a research report on Wednesday, November 12th. Four analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $4.40.

Mereo BioPharma Group Price Performance

NASDAQ MREO opened at $0.37 on Monday. The stock has a market capitalization of $58.96 million, a price-to-earnings ratio of -6.18 and a beta of 0.44. Mereo BioPharma Group has a 1-year low of $0.20 and a 1-year high of $3.84. The business’s fifty day moving average price is $1.90 and its 200-day moving average price is $1.96.

Mereo BioPharma Group (NASDAQ:MREO) last issued its quarterly earnings data on Monday, November 10th. The company reported ($0.01) EPS for the quarter. Equities research analysts anticipate that Mereo BioPharma Group will post -0.03 EPS for the current year.

Institutional Investors Weigh In On Mereo BioPharma Group

Several institutional investors have recently modified their holdings of the stock. Goldman Sachs Group Inc. increased its position in shares of Mereo BioPharma Group by 0.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,125,920 shares of the company’s stock valued at $4,783,000 after purchasing an additional 6,068 shares during the last quarter. Significant Wealth Partners LLC increased its position in Mereo BioPharma Group by 61.7% during the second quarter. Significant Wealth Partners LLC now owns 22,261 shares of the company’s stock valued at $60,000 after acquiring an additional 8,490 shares during the last quarter. Squarepoint Ops LLC lifted its holdings in shares of Mereo BioPharma Group by 45.4% in the 3rd quarter. Squarepoint Ops LLC now owns 30,055 shares of the company’s stock worth $62,000 after acquiring an additional 9,387 shares during the last quarter. Marex Group plc purchased a new position in shares of Mereo BioPharma Group during the second quarter valued at approximately $27,000. Finally, Avanza Fonder AB raised its holdings in shares of Mereo BioPharma Group by 36.0% in the second quarter. Avanza Fonder AB now owns 38,235 shares of the company’s stock worth $104,000 after buying an additional 10,114 shares during the period. 62.83% of the stock is owned by institutional investors.

Key Headlines Impacting Mereo BioPharma Group

Here are the key news stories impacting Mereo BioPharma Group this week:

• Positive Sentiment: BTIG cut its price target to $1.00 but maintained a “buy” rating, which could provide some support from buy-side interest despite a lower valuation. BTIG price target note
• Positive Sentiment: Mereo said it will implement cost controls in response to the trial results, which may help preserve cash runway and reduce near-term dilution risk. Company update on trials and cost controls
• Neutral Sentiment: Trading in MREO was temporarily halted early on the news pending release — a procedural step that amplified volatility but did not itself change fundamentals. (Trading-halt notice issued Dec. 29)
• Negative Sentiment: Company announcement: the Phase 3 ORBIT and COSMIC studies of setrusumab did not achieve their primary endpoints (no statistically significant reduction in annualized clinical fracture rate versus placebo or bisphosphonates). This directly undermines the drug’s approval/commercial case. ORBIT and COSMIC results
• Negative Sentiment: Market reaction: multiple outlets report the stock plunged after the failed Phase 3 readouts, with heavy volume and sharp price declines reflecting a collapse in investor expectations for setrusumab. Stock plummets coverage
• Negative Sentiment: Analyst downgrade: LifeSci Capital lowered Mereo from “outperform” to “hold,” signaling reduced confidence from the sell side and likely contributing to further selling pressure. LifeSci Capital downgrade
• Negative Sentiment: Legal risk: Pomerantz LLP has launched an investor investigation into Mereo, which raises the prospect of litigation and potential liability or settlement costs. Pomerantz investor investigation

Mereo BioPharma Group Company Profile

Mereo BioPharma Group plc is a clinical‐stage biopharmaceutical company focused on developing novel therapies for rare diseases, oncology and severe respiratory conditions. The company pursues an asset‐centric model, in which it in-licenses or acquires clinical-stage small molecules and monoclonal antibodies with established safety profiles. By concentrating resources on a select number of programs, Mereo aims to accelerate proof-of-concept studies and maximize the potential value of each therapeutic candidate.

Mereo’s pipeline includes investigational therapies for skeletal disorders, such as setrusumab (BPS-804) for osteogenesis imperfecta, and treatments for acute and chronic respiratory diseases.