Should You Buy Mereo BioPharma Group PLC (MREO) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Sell
Latest Price
0.440
1 Day change
-2.23%
52 Week Range
3.250
Analysis Updated At
2026/01/26
Mereo BioPharma Group PLC (MREO) is not a good buy for a beginner, long-term investor with $50,000-$100,000 available. The stock faces significant challenges, including poor Phase 3 trial results, negative financial performance, and bearish technical indicators. Analysts have heavily downgraded the stock, and there are no positive catalysts or strong trading signals to support an investment at this time.
Technical Analysis
The technical indicators for MREO are bearish. The MACD is positive but expanding slightly, while the RSI is neutral at 34.351. Moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels (S1: 0.432), and resistance levels (R1: 0.736) are far above the current price. Overall, the technical outlook is weak.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Technical Summary
Sell
10
Buy
1
Positive Catalysts
NULL. There are no recent positive news events, and the company's financials and trial results do not provide any immediate upside potential.
Neutral/Negative Catalysts
The Phase 3 Orbit and Cosmic studies for setrusumab in Osteogenesis Imperfecta failed to achieve statistical significance for primary endpoints, leading to significant analyst downgrades and reduced price targets. The company's financial performance is also poor, with declining net income (-53.18% YoY) and EPS (-50% YoY).
Financial Performance
In Q3 2025, the company's revenue remained at $0 with no growth. Net income dropped significantly to -$7,024,000 (-53.18% YoY), and EPS fell to -0.01 (-50.00% YoY). Gross margin remained unchanged at 73.4%. Overall, the financial performance is weak and does not support a long-term investment.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts have heavily downgraded the stock. Cantor Fitzgerald, BTIG, Baird, and Jefferies all lowered price targets significantly, with the highest target now at $3 and the lowest at $0.50. Ratings have been downgraded to Hold or Market Perform due to poor trial results and reduced probability of success for key drugs in the pipeline.
Wall Street analysts forecast MREO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MREO is 2.08 USD with a low forecast of 0.5 USD and a high forecast of 5 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.
8 Analyst Rating
Wall Street analysts forecast MREO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MREO is 2.08 USD with a low forecast of 0.5 USD and a high forecast of 5 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.
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 0.449
Low
0.5
Averages
2.08
High
5
Current: 0.449
Low
0.5
Averages
2.08
High
5
Cantor Fitzgerald
Kristen Kluska
Overweight
downgrade
$6 -> $3
AI Analysis
2025-12-29
Reason
Cantor Fitzgerald
Kristen Kluska
Price Target
$6 -> $3
AI Analysis
2025-12-29
downgrade
Overweight
Reason
Cantor Fitzgerald analyst Kristen Kluska lowered the firm's price target on Mereo BioPharma to $3 from $6 and keeps an Overweight rating on the shares after the company announced that neither of the Phase 3 Orbit and Cosmic studies for setrusumab in Osteogenesis Imperfecta achieved statistical significance against their primary endpoints.
LifeSci Capital
Outperform -> Market Perform
downgrade
2025-12-29
Reason
LifeSci Capital
Price Target
2025-12-29
downgrade
Outperform -> Market Perform
Reason
LifeSci Capital downgraded Mereo BioPharma to Market Perform from Outperform.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for MREO
