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J.P. Morgan has lowered its rating of Metagenomi (NASDAQ:MGX) to neutral, citing the recent termination of its partnership with Moderna (MRNA).
The investment bank said it was “very surprised” by Wednesday’s termination news, adding that while it still sees potential in the company’s toolbox, “losing a partner like Moderna at this early stage in development raises more questions than answers.”
While the bank doesn’t see the termination reading through to Metagenomi’s partnership with Ionis (IONS) and near-term catalysts, it said the company was still a “show me” story and that its partnership with Moderna had been “a critical part of our core thesis.”
“With a cash runway into 2027, and two INDs expected by 2026, we think it is prudent to move to the sidelines as we look for visibility on their execution and path towards clinical testing,” the bank said.
J.P. Morgan lowered its price target for the stock to $6 from $16.
Metagenomi went public in February, raising $94M. After the IPO, Moderna, a Metagenomi shareholder, was to have retained a 4.6% stake in the company, according to an SEC filing.
