IN8bio Receives “Hold” Rating Upgrade Amid Analyst Revisions

Shares of IN8bio, Inc. (NASDAQ: INAB) have been upgraded to a “Hold” rating by Zacks Research, according to a report released on the morning of October 8, 2023. This adjustment reflects a shift in market sentiment towards the stock, which has seen mixed evaluations from other analysts in recent weeks.

Prior to Zacks’ upgrade, Weiss Ratings reiterated a “sell (e+)” rating for IN8bio in a note issued on the same date. Meanwhile, Mizuho set a price target of $4.00 for the stock on October 13, 2023. Currently, one equity research analyst has assigned a “Buy” rating, while another has maintained a “Hold” rating, and one has issued a “Sell” rating. MarketBeat.com indicates that IN8bio holds an average rating of “Hold” with a consensus target price of $92.00.

Financial Performance and Analyst Forecasts

IN8bio reported its quarterly earnings on November 6, 2023, disclosing earnings per share of ($0.85). This figure exceeded analysts’ consensus estimates of ($1.20) by $0.35. Analysts project that IN8bio will post an average earnings per share of (-$0.56) for the current year.

Institutional investors have also been active, with several adding or reducing their stakes in IN8bio recently. Two Sigma Investments LP acquired a new stake valued at approximately $107,000 during the third quarter. Similarly, Citadel Advisors LLC purchased shares worth $54,000, and Stonepine Capital Management LLC invested $172,000 in the second quarter. Institutional ownership of IN8bio currently stands at 92.05%.

Market Sentiment and Future Projections

Recent analyst revisions have contributed to a more positive outlook for IN8bio. HC Wainwright significantly raised its near-term earnings per share forecasts for the company, adjusting projections for quarters one to four of 2026 from approximately ($1.20)/($1.50) to about ($0.21), ($0.25), ($0.29), and ($0.33) respectively. This revision implies a substantial reduction in expected losses for 2026.

Moreover, annual estimates were also upgraded, with the FY2025 earnings per share revised to ($0.66) and FY2026 adjusted to ($1.09), down from prior estimates that projected losses as high as ($5.71). Analysts now foresee a path to profitability, with projections suggesting earnings of $0.25 for FY2029 and $0.62 for FY2030.

Despite these upgrades, HC Wainwright’s forecast for FY2026 remains lower than the consensus estimate of ($0.56). While sentiment is improving, risks associated with timing and execution still persist, and analysts caution investors to view these revisions as signs of growing optimism rather than guarantees of sustained profitability.

Company Overview

IN8bio, Inc. is a clinical-stage biotechnology firm focused on developing innovative immunotherapies to treat cancer and neurodegenerative disorders. The company utilizes insights from the body’s innate and adaptive immune systems to engineer cell-based products aimed at targeting solid tumors and cognitive decline. IN8bio’s pipeline is built on two proprietary platforms, including the ENACTTM platform, which specializes in allogeneic gamma delta T cell therapies. Its lead candidates are currently advancing through early-stage clinical trials in glioblastoma and other oncology indications.

As market dynamics continue to evolve, stakeholders will be closely monitoring IN8bio’s performance and the broader implications of analyst forecasts on the company’s trajectory.