Core Insights - RAPT Therapeutics reported a productive first half of 2025 with key achievements and upcoming catalysts anticipated in the second half of the year [2] - The company is on track to initiate a Phase 2b trial of RPT904 in food allergy and to report topline results from Jemincare's Phase 2 trials of RPT904 in CSU and asthma [2] - RAPT's financial results show a significant reduction in net loss compared to the previous year, indicating improved financial health [3][5] Financial Performance - The net loss for the second quarter of 2025 was $17.6 million, a decrease from $27.7 million in the second quarter of 2024 [3] - Research and development expenses for the second quarter of 2025 were $12.3 million, down from $22.6 million in the same period of 2024, primarily due to reduced costs in the development of certain drugs [4] - General and administrative expenses increased to $7.2 million in the second quarter of 2025 from $6.7 million in the same period of 2024, mainly due to higher consulting and facilities costs [5] Six-Month Overview - For the six months ended June 30, 2025, the net loss was $34.8 million, compared to $58.2 million for the same period in 2024 [5] - Research and development expenses for the first half of 2025 totaled $24.4 million, down from $47.4 million in the first half of 2024, reflecting a similar trend as seen in the second quarter [6] - General and administrative expenses remained flat at $14.4 million for both the first halves of 2025 and 2024 [7] Cash Position - As of June 30, 2025, RAPT had cash and cash equivalents and marketable securities totaling $168.9 million [7]

Group 1 - Rapt Therapeutics (RAPT) shares have increased by 34.2% over the past four weeks, closing at $10.8, with a mean price target of $24 indicating a potential upside of 122.2% [1] - The average price targets range from a low of $14.00 to a high of $31.00, with a standard deviation of $8.89, suggesting a variability in estimates; the lowest estimate indicates a 29.6% increase, while the highest points to a 187% upside [2] - Analysts show strong agreement in revising earnings estimates higher, which correlates with potential stock price movements, as the Zacks Consensus Estimate for the current year has increased by 33.4% [4][12] Group 2 - RAPT currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating a strong potential upside [13] - While price targets can be misleading, the direction implied by the consensus price target suggests a positive outlook for RAPT's stock [10][14]

Core Viewpoint - Rapt Therapeutics has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Stock Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for Rapt Therapeutics indicates a positive outlook on its earnings, likely leading to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimate Revisions - Changes in a company's future earnings potential, as reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly influenced by institutional investors [5]. - For Rapt Therapeutics, the rising earnings estimates and the rating upgrade suggest an improvement in the company's underlying business, which should drive the stock price higher [6]. Historical Performance of Zacks Rank - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Rapt Therapeutics to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [11]. Recent Earnings Estimate Trends - For the fiscal year ending December 2025, Rapt Therapeutics is expected to earn -$2.29 per share, unchanged from the previous year, but analysts have raised their estimates significantly, with a 72.2% increase in the Zacks Consensus Estimate over the past three months [9].

Core Viewpoint - Rapt Therapeutics (RAPT) shares have increased by 5.8% recently, closing at $8.72, with a mean price target of $24.75 suggesting a potential upside of 183.8% [1][2] Price Targets and Analyst Estimates - The mean estimate consists of four short-term price targets with a standard deviation of $17.35, indicating variability among analysts [2] - The lowest estimate is $8.00, suggesting an 8.3% decline, while the highest estimate is $48.00, indicating a potential surge of 450.5% [2] - A low standard deviation indicates a strong agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Analyst Agreement - Analysts have shown increasing optimism about RAPT's earnings prospects, with a positive trend in earnings estimate revisions [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 24.1%, with one estimate moving higher and no negative revisions [12] - RAPT holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - Solely relying on consensus price targets for investment decisions may not be wise, as analysts' ability to set accurate targets has been questioned [3][10] - Price targets can often be inflated due to business incentives, leading to overly optimistic projections [8]

Group 1 - Futu Holdings Limited (FUTU) has seen a 7.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Pan American Silver Corp. (PAAS) has experienced a 9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - RAPT Therapeutics, Inc. (RAPT) has seen a significant increase of 72.1% in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Hamilton Insurance Group, Ltd. (HG) has experienced an 18.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Invesco Ltd. (IVZ) has seen a 7.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Core Insights - RAPT Therapeutics has appointed Scott Braunstein, M.D., and Ashley Dombkowski, Ph.D., to its board of directors, enhancing its leadership team during a critical phase of development [1][2] - The company's lead product candidate, RPT904, is a monoclonal antibody targeting free human immunoglobulin E (IgE) and is currently in Phase 2 trials for chronic spontaneous urticaria and asthma, with plans to initiate a Phase 2 trial for food allergy later this year [1][2] Company Overview - RAPT Therapeutics is a clinical-stage biopharmaceutical company focused on developing therapies for inflammatory and immunological diseases, leveraging proprietary expertise in immunology [5] Leadership Experience - Scott Braunstein, M.D., has over 30 years of experience in the biotechnology and pharmaceutical industries, including roles at Aisling Capital and Marinus Pharmaceuticals, and has served on multiple boards [3] - Ashley Dombkowski, Ph.D., brings over 20 years of experience as an executive and investor, previously serving as CEO of Cellics Therapeutics and co-founding several companies focused on food allergy treatments [4]

Core Viewpoint - Rapt Therapeutics (RAPT) shares have seen a 1.7% increase over the past four weeks, closing at $7.84, with analysts suggesting a potential upside of 282.7% based on a mean price target of $30 [1] Price Targets and Estimates - The average price target for RAPT ranges from a low of $8.00 to a high of $48.00, with a standard deviation of $21.04, indicating variability in analyst estimates [2] - The lowest estimate suggests a 2% increase from the current price, while the highest estimate indicates a potential upside of 512.2% [2] - Analysts' consensus on price targets is often questioned, as they may not accurately reflect future stock prices [3][7] Earnings Estimates and Analyst Agreement - Analysts are optimistic about RAPT's earnings prospects, with a consensus indicating better-than-previously estimated earnings [4][11] - Over the last 30 days, one earnings estimate has increased, leading to a 22.6% rise in the Zacks Consensus Estimate for the current year [12] - RAPT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Conclusion on Price Movement - While the consensus price target may not be a reliable indicator of RAPT's potential gains, the direction implied by these targets appears to be a useful guide for investors [14]

Core Viewpoint - RAPT Therapeutics, Inc. announced a 1-for-8 reverse stock split effective June 16, 2025, aimed at consolidating its outstanding shares to potentially enhance its stock price and market perception [1][2]. Company Overview - RAPT Therapeutics, Inc. is a clinical-stage immunology-based biopharmaceutical company focused on discovering, developing, and commercializing novel therapies for patients with inflammatory and immunological diseases [5]. Reverse Stock Split Details - The reverse stock split will reduce the number of issued and outstanding shares from approximately 132.3 million to approximately 16.5 million [4]. - The reverse stock split will be effective at 11:59 pm Eastern Time on June 16, 2025, with trading on a reverse stock split-adjusted basis starting June 17, 2025 [1][2]. - Every eight issued and outstanding shares will be combined into one share without changing the par value per share, and fractional shares will not be issued [3]. - Stockholders entitled to fractional shares will receive a cash payment instead [3]. - The total number of authorized shares will remain at 500 million, but the number available for future issuance will increase [3]. Impact on Stockholders - The reverse stock split will affect all stockholders uniformly and will not alter their relative interest in the company's equity securities, except for adjustments related to fractional shares [3].

Financial Data and Key Metrics Changes - The company has successfully raised capital and is fully funded through key data readouts into 2027, indicating strong financial health [6] - The company is focused on late-stage development in allergic diseases, particularly with the acquisition of RPT-904, which is expected to drive future revenue growth [4][5] Business Line Data and Key Metrics Changes - The acquisition of RPT-904, a next-generation anti-IgE therapy, positions the company to address significant unmet needs in food allergies and chronic spontaneous urticaria (CSU) [4][5] - The company plans to initiate a Phase 2b study in food allergy, which is expected to take about 18 months to read out [5] Market Data and Key Metrics Changes - There are approximately 17 million Americans diagnosed with food allergies, with over 4 million classified as severe, representing a substantial market opportunity [33] - The company estimates that around 40% of the target addressable population would be willing to undergo treatment, translating to nearly 2 million potential patients [34] Company Strategy and Development Direction - The company is focused on developing RPT-904 for food allergies and CSU, with plans for a broad label to capture a wide patient population [21][41] - The strategy includes leveraging the extended half-life of RPT-904 to improve patient compliance and reduce healthcare burdens, which is attractive to payers [17][73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to translate clinical data from China to the U.S. market, citing similarities in patient populations and dosing tables [16][54] - The management highlighted the high unmet need in the food allergy market, with over 50,000 patients currently using Xolair, indicating a significant opportunity for RPT-904 [89] Other Important Information - The company is also exploring the development of a next-generation CCR4 antagonist, which remains a priority despite previous clinical challenges [81][87] - The company is considering partnerships for commercialization, especially for larger indications in allergic diseases [76] Q&A Session Summary Question: What attracted the company to RPT-904? - The company believes RPT-904 is a best-in-class molecule with a better half-life and potency compared to existing therapies like Xolair [8][10] Question: How does RPT-904 compare to Xolair? - RPT-904 has a longer half-life and is expected to allow for less frequent dosing, which could improve patient compliance [11][73] Question: What is the target population for RPT-904? - The company aims to capture a broad label, including patients who are currently off-label for Xolair due to high IgE levels or weight [22][24] Question: What are the key parameters for the Phase 2 trial? - The trial will follow a double-blind placebo-controlled food challenge study design, focusing on multiple allergens [25][31] Question: How does the company plan to address the pediatric population? - The company plans to include children as young as four years old in the Phase 3 study, pending discussions with the FDA [35][36] Question: What is the competitive landscape for CSU and food allergy? - The company sees itself well-positioned against competitors like Omalizumab and emerging therapies, particularly due to its unique dosing regimen and ability to treat excluded patients [68][71][73]

Core Viewpoint - Rapt Therapeutics has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system focuses on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to institutional investors adjusting their valuations, resulting in stock price movements [4]. Company Performance Indicators - For the fiscal year ending December 2025, Rapt Therapeutics is projected to earn -$0.49 per share, reflecting an 84.6% change from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Rapt Therapeutics has increased by 64%, indicating a positive outlook for the company's earnings [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of generating significant returns for top-ranked stocks [7][9]. - Rapt Therapeutics' upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].