Mersana Therapeutics (NASDAQ:MRSN) has been downgraded from a “strong-buy” to a “hold” rating by equities researchers at Leerink Partners, as reported on November 14, 2023. This decision reflects a broader trend among analysts, with several firms recently adjusting their ratings on the clinical-stage biopharmaceutical company, which focuses on developing antibody drug conjugates for cancer treatment.
On the same day, Wedbush also changed its position on Mersana, lowering its rating from “strong-buy” to “hold.” In a research note issued just days earlier, Weiss Ratings reaffirmed a “sell (e+)” rating for Mersana’s shares, while William Blair shifted its recommendation to a “market perform.” Guggenheim maintained a “neutral” rating, and BTIG Research downgraded the stock from “buy” to “hold.” Currently, seven analysts have assigned a “hold” rating and one has issued a “sell” rating, indicating a cautious outlook on the company’s future performance.
Analysts have noted that Mersana Therapeutics has a consensus rating of “Reduce” with an average price target of $38.19, according to data from MarketBeat.
Recent Financial Performance
Mersana Therapeutics reported its latest earnings results on November 14, revealing a loss of ($1.51) earnings per share (EPS) for the quarter. This figure fell short of the consensus estimate of ($1.44) by ($0.07). The company generated revenue of $11.01 million, significantly below analysts’ expectations of $14.20 million for the same period. Looking ahead, sell-side analysts predict that Mersana will post an EPS of (-0.62) for the current fiscal year.
Investor Activity and Institutional Ownership
In the context of recent downgrades, large investors have been active in the market for Mersana shares. Mackenzie Financial Corp purchased a new stake valued at $371,000 in the third quarter. 683 Capital Management LLC increased its holdings by 20.6% during the second quarter, now owning 1,990,000 shares worth $589,000 after acquiring an additional 340,000 shares.
Other notable transactions include Jane Street Group LLC, which acquired a new position valued at approximately $151,000, and Cerity Partners LLC, which lifted its stake by 31.4%, now holding 320,805 shares valued at $95,000. In total, institutional investors and hedge funds own approximately 93.92% of Mersana Therapeutics’ stock.
Mersana Therapeutics, based in Cambridge, Massachusetts, is focused on developing innovative therapies for cancer patients with unmet medical needs. The company’s pipeline includes XMT-1660, a B7-H4-targeted Dolasynthen ADC candidate, and XMT-2056, an immunosynthen ADC. Mersana has established research and development collaborations with notable organizations including Janssen Biotech, Ares Trading SA, Merck KGaA, and Asana BioSciences.
As the market reacts to these downgrades and Mersana continues its development efforts, investors will be closely monitoring the company’s performance and any adjustments in analyst sentiment.
