Roth Capital Partners and MKM Partners have launched coverage on Arcturus Therapeutics Holdings Inc. (NASDAQ: ARCT) with an initial Buy rating and established a price target of $20.00 per share. This target implies a significant potential appreciation of approximately 163% relative to Arcturus's current market price near $7.59.
The analysts highlighted that Arcturus appears substantially undervalued in light of its share performance dynamics. Specifically, since the beginning of 2025, Arcturus's stock has declined around 65%, contrasting sharply with a 36% increase in the XBI biotech index during the same timeframe. More recent data from InvestingPro reinforces this downward trajectory, indicating a steep 50.87% drop over the prior six months.
The firm's assessment attributes the stock's depressed performance to multiple headwinds. These include the aftermath of challenges in mRNA COVID-19 related markets, a conservative interpretation of clinical data for ARCT-032 in cystic fibrosis patients at the 10 mg dosage, and lingering regulatory ambiguities affecting the ARCT-810 program targeting ornithine transcarbamylase (OTC) deficiency. Arcturus's share price has demonstrated notable volatility, with additional pricing movement insights accessible to InvestingPro subscribers.
Despite these near-term obstacles, Roth/MKM underscores the biotech's robust clinical pipeline, featuring two mid-stage assets with demonstrated biological activity and peak sales projections exceeding $1 billion each. The current share price, trading close to the company's cash value, suggests that the market is assigning a near-zero probability of success for these assets.
Further financial analysis reveals a strong liquidity position; the company's Current Ratio stands at 7.86, signaling that liquid assets are nearly eight times greater than short-term obligations. This capital cushion is expected to sustain operations through 2028, allowing Arcturus to advance its pipeline without immediate funding pressures.
The analysts characterize Arcturus as "one of the most mispriced stocks in rare disease," citing the juxtaposition of its cash runway, undervaluation, and the anticipated catalysts for its two key clinical programs, slated for the first half of 2026. Broadly, market consensus reflects a bullish stance with an aggregate Buy rating and target price range spanning from $7 to $72 per share.
For investors seeking an in-depth evaluation, the Pro Research Report on InvestingPro offers comprehensive coverage including assessments of Arcturus's financial health indicators and longer-term outlook. This report contributes to InvestingPro’s extensive tracking of over 1,400 U.S. equities.
In related developments, Arcturus released its third-quarter earnings report for 2025, which indicated results markedly below analyst expectations. The company reported a loss per share of $0.49 against a consensus forecast of $5.53, representing a negative surprise of 108.86%. Revenue similarly fell short, recording $17.15 million compared to anticipated levels near $279.77 million, a shortfall of nearly 94%.
Additionally, corporate governance has shifted as CFO and board member Andy Sassine agreed to conclude his tenure by December 31, 2025, following a voluntary board resignation earlier that month. The board of directors subsequently contracted from nine to eight members. Company statements confirmed his departure was mutual and not the result of disagreements over company affairs.
Overall, Arcturus Therapeutics sits at a crossroads defined by significant valuation discrepancies relative to its clinical potential and financial foundation, alongside operational and regulatory challenges that have weighed on recent performance.