IO Biotech Inc (IOBT) saw a significant decline of 18.77% as it crossed below its 5-day SMA, reflecting investor concerns about its financial health.
The company has announced its intention to explore various strategic alternatives, including mergers, asset sales, or liquidation, to maximize shareholder value. This decision comes amid a tightening cash runway, with IO Biotech reporting only $30.7 million in cash, sufficient to fund operations through Q1 2026. The lack of a clear timeline for these evaluations adds uncertainty, and the potential for layoffs further complicates the situation, impacting investor confidence.
As IO Biotech navigates these challenges, the implications for its future remain uncertain. The exploration of strategic alternatives may provide a path forward, but the lack of immediate solutions and the ongoing financial constraints could weigh heavily on its stock performance.
Wall Street analysts forecast IOBT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IOBT is 1.68 USD with a low forecast of 0.36 USD and a high forecast of 3.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
Wall Street analysts forecast IOBT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IOBT is 1.68 USD with a low forecast of 0.36 USD and a high forecast of 3.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
1 Hold
1 Sell
Hold
Current: 0.316
Low
0.36
Averages
1.68
High
3.00
Current: 0.316
Low
0.36
Averages
1.68
High
3.00
Piper Sandler
Overweight -> Neutral
downgrade
$3
2026-01-26
New
Reason
Piper Sandler
Price Target
$3
AI Analysis
2026-01-26
New
downgrade
Overweight -> Neutral
Reason
Piper Sandler Friday night downgraded IO Biotech to Neutral from Overweight with a price target of 50c, down from $3. The firm cites the company's intention to explore strategic opportunities to maximize shareholder value for the downgrade. While the underlying science behind IO's T-win platform and lead candidate cylembio is promising, the company continues to face capital constraints, the analyst tells investors in a research note. Piper stepped to the sidelines, saying there's no assurance the company's strategic alternatives process will pan out favorably, or that a transaction will be completed on attractive terms.
Piper Sandler
Allison Bratzel
Overweight
to
Neutral
downgrade
$3
2026-01-23
Reason
Piper Sandler
Allison Bratzel
Price Target
$3
2026-01-23
downgrade
Overweight
to
Neutral
Reason
Piper Sandler analyst Allison Bratzel downgraded IO Biotech to Neutral from Overweight with a price target of 50c, down from $3.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for IOBT
Unlock Now
Morgan Stanley
Mike Ulz
Equal Weight -> Underweight
downgrade
2026-01-08
Reason
Morgan Stanley
Mike Ulz
Price Target
2026-01-08
downgrade
Equal Weight -> Underweight
Reason
Morgan Stanley analyst Mike Ulz downgraded IO Biotech to Underweight from Equal Weight with a price target of 36c, down from 39c, after the Phase 3 study for lead program, Cylembio in melanoma, failed and the FDA recommend against regulatory filing. While the firm continues to believe Cylembio may have potential, more data are needed for confirmation, which could take several years, the analyst added.
Piper Sandler
Overweight
downgrade
$10 -> $3
2025-10-22
Reason
Piper Sandler
Price Target
$10 -> $3
2025-10-22
downgrade
Overweight
Reason
Piper Sandler lowered the firm's price target on IO Biotech to $3 from $10 and keeps an Overweight rating on the shares following several updates, including recent disclosure of FDA's recommendation to not submit a BLA based on data from the pivotal study of Cylembio + pembrolizumab in 1L advanced melanoma. IO now intends to align with FDA on design of a potential new registrational study for Cylembio and still plans to discuss the data with EU regulators. Based on this news, the firm is pushing back U.S. launch in advanced melanoma to FY29.
About IOBT
IO Biotech Inc is a clinical-stage biopharmaceutical company developing immune-modulating cancer therapies based on T-win technology platform. The Company’s product candidates are designed to induce the immune system to simultaneously target and disrupt multiple pathways that regulate tumor-induced immunosuppression. IO Biotech’s lead product candidate, IO102-IO103, is designed to target the immunosuppressive mechanisms mediated by key immunosuppressive proteins such as IDO and PD-L1. The Company develops a pipeline of product candidates that leverage its T-win technology platform to address targets within the TME. The Company is spin-off of National Cancer for Center Immune Therapy at Herlev University Hospital in Denmark.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
