SGMO: FDA Approval Path Will Drive Bullish Outlook Into 2026

Analysts have lowered their price target for Sangamo Therapeutics from $5 to $1. They cited a cautious outlook, pending greater clarity on a Fabry collaboration and updated guidance following the company's latest quarterly report.

Analyst Commentary

Recent analyst updates for Sangamo Therapeutics reflect a shift in sentiment, as experts weigh both positive developments and ongoing concerns impacting the company's outlook and valuation.

Bullish Takeaways

• The company's cash runway has been extended into the first quarter of 2026. This supports ongoing operations and upcoming milestones.
• The FDA has reaffirmed an accelerated approval path for Sangamo's Fabry program using eGFR slope as the primary endpoint. This provides a potential catalyst for future regulatory progress.
• Extension of the financial runway allows management to focus on execution and strategic initiatives without immediate pressure for capital raises.

Bearish Takeaways

• Analysts remain cautious due to limited clarity on the anticipated Fabry collaboration. This is seen as a key driver for growth and value creation.
• Uncertainty persists regarding updated guidance following the recent quarterly report. This contributes to a conservative near-term outlook.
• The reduced price target signals tempered expectations and reflects concerns over execution risks and timelines for pivotal milestones.

What's in the News

• Sangamo Therapeutics received a 180-day extension from Nasdaq, giving the company until April 27, 2026, to regain compliance with the $1.00 minimum bid price requirement for continued listing. Failure to meet this could result in delisting. The company may appeal if that happens (Key Developments).
• Chief Financial Officer Prathyusha Duraibabu will resign effective October 1, 2025, to pursue a role at a private artificial intelligence firm. The resignation was not related to any disagreement with company operations or policies (Key Developments).
• New clinical data on the investigational gene therapy ST-920 for Fabry disease was presented at ICIEM2025. The study showed a positive mean annualized eGFR slope over 52 weeks in treated patients, and the therapy has secured several regulatory designations in the US, EU, and UK (Key Developments).

Valuation Changes

• Fair Value: Declined from $4.10 to $3.25, signaling a lower consensus on the company's intrinsic value per share.
• Discount Rate: Increased slightly from 6.93% to 7.28%, reflecting a higher risk premium applied to future cash flows.
• Revenue Growth: Projected revenue growth rate has risen sharply from 27.13% to 78.68%, indicating heightened expectations for topline expansion.
• Net Profit Margin: Dropped from 14.17% to 7.94%, suggesting expectations of reduced profitability.
• Future P/E: Increased from 77.77x to 111.07x, pointing to a higher valuation multiple based on future earnings estimates.