10 Most Shorted Stocks That Are Loved by Analysts

2. Cabaletta Bio, Inc. (NASDAQ:CABA)

Short Interest Percentage: 22.71%

Average Share Price Target: $33.56

Share Price Upside: 301.92%

Cabaletta Bio, Inc. (NASDAQ:CABA) is a Pennsylvania based firm developing treatments for immune system diseases. Its primary drug that could end up generating millions in revenue is the CABA-201 drug. This is a T-cell drug that is capable of treating more than one autoimmune disease, such as Myositis. On this front, CABA-201 has had a busy 2024. The drug has received FDA fast track designations for sclerosis and dermatomyositis, an orphan drug designation for sclerosis and myositis, and positive clinical trial data for ‘resetting’ a patient’s immune system. CABA-201 is quite important for Cabaletta Bio, Inc. (NASDAQ:CABA), since the company is a loss making entity that needs drugs to get to the market and generate revenue.

After Cabaletta Bio, Inc. (NASDAQ:CABA) presented the latest set of data for CABA-201’s clinical trial, Citi reaffirmed a $30 share price target and a Buy rating for the shares in May 2024. It shared that the drug’s progress was consistent with performance expectations, and CABA-201 benefits from a robust safety profile. Fred Alger Management mentioned the firm in its Q4 2023 investor letter, citing similar optimism:

“Cabaletta Bio, Inc. (NASDAQ:CABA) is a clinical-stage biotechnology company focused on the discovery and development of targeted cell therapies for autoimmune diseases. The company’s leading candidate, CABA-201, usd a cell therapy approach for the treatment of lupus and myositis, where the U.S. Food and Drug Administration has accepted CABA-201 for New Drug Applications, setting the stage for initial phase 1/2 readouts in the first half of 2024. We believe CABA-201 represents a multibillion-dollar opportunity for the treatment of autoimmune diseases. During the quarter, shares contributed to performance where biotechnology stocks rallied on lower interest rates and several acquisitions, Additionally, the company has reported positive clinical developments throughout the year which encouraged investors to anticipate an effective regulatory pathway to approval in our view.”