Sangamo Therapeutics (SGMO): Evaluating Valuation After Nasdaq Extension and Latest Earnings Decline

Sangamo Therapeutics (SGMO) investors are watching closely after the company received a 180-day extension from Nasdaq to regain compliance with the $1.00 minimum bid price rule, alleviating immediate delisting concerns. The extension follows third quarter earnings that revealed sharply lower revenue and a wider net loss compared to last year.

See our latest analysis for Sangamo Therapeutics.

Sangamo Therapeutics has seen sustained downward pressure on its share price throughout the year, with a 1-year total shareholder return of -83.61% highlighting just how tough the past twelve months have been. While the recent Nasdaq extension helped ease delisting fears, the combination of earnings volatility and long-term declines means investors are still cautious about momentum rebuilding in the near future.

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With shares trading at a steep discount relative to analyst price targets and multi-year lows, the debate intensifies. Is Sangamo Therapeutics genuinely undervalued, or are persistent challenges already factored into its current price?

Most Popular Narrative: 88.8% Undervalued

With Sangamo Therapeutics last closing at $0.46 and the narrative’s fair value set at $4.10, there is a significant gap between current sentiment and consensus expectations on future growth potential. As market pessimism weighs on the price, the narrative highlights bullish clinical and commercial catalysts that could dramatically alter this disconnect.

The successful Phase 1/2 STAAR study in Fabry disease, demonstrating clinically meaningful improvement over existing standards and positive durability, positions Sangamo for potential accelerated FDA approval in 2026. This could expand its addressable patient pool and set the stage for substantial near-term revenue inflection and margin improvement upon launch.

Read the complete narrative.

Want to see what’s fueling such a bold jump in valuation? Something significant is outlined in the narrative’s growth blueprint: rapid commercial ramp-up, attractive margins, and a potential windfall from sectors typically reserved for biotech leaders. Find out what key projections are pushing expectations higher and whether the market could be missing a dramatic turnaround.

Result: Fair Value of $4.10 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, substantial funding needs and delays in key clinical milestones could quickly undermine this narrative. This situation threatens both recovery and future valuation.

Find out about the key risks to this Sangamo Therapeutics narrative.

Build Your Own Sangamo Therapeutics Narrative

If you have a different perspective or prefer to dig into the numbers yourself, you can shape your own outlook for Sangamo Therapeutics in just a few minutes. Do it your way

A great starting point for your Sangamo Therapeutics research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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