Jefferies opens coverage
Jefferies has initiated coverage on Foghorn Therapeutics Inc. (NASDAQ: FHTX) with a Buy recommendation and set a price target of $12.00, reduced from a previous $14.00. The biotechnology company is trading at $5.55, implying meaningful upside to Jefferies' target based on a market capitalization near $325 million. Analyst price targets across the street span roughly $9 to $14, reflecting a broadly bullish consensus among sell-side firms.
Near-term clinical catalyst
Jefferies identifies a key catalyst for the company in mid-2026, when Foghorn is expected to report limited topline results from the phase 1 dose-escalation study of FHD-909, a SMARCA2 inhibitor. Those topline data will inform the company’s decision on whether to proceed to dose expansion. Jefferies cited strong preclinical data and a clear scientific rationale in support of its positive outlook for the candidate.
Pipeline beyond FHD-909
Outside of the SMARCA2 program, Foghorn is advancing selective degraders targeting EP300 and CBP, which the firm describes as having compelling preclinical activity. The pipeline thus includes multiple preclinical-stage assets alongside the lead clinical-stage candidate.
Balance sheet and cash considerations
According to InvestingPro, Foghorn reports more cash than debt on its balance sheet and a current ratio of 2.16, indicating short-term liquidity above immediate obligations. The same source, however, notes that the company is burning cash quickly, a consideration for investors monitoring runway and financing needs.
Recent financing and corporate moves
Foghorn completed a $50 million equity financing that was priced at a roughly 30% premium, which management characterized as a significant endorsement from biotech investors. In tandem with capital markets activity, the company named Jeff Sacher as interim chief financial officer and treasurer. Sacher is affiliated with Danforth Advisors, LLC and will serve under the firm’s existing consulting agreement while the company searches for a permanent CFO.
Broader analyst interest
Other brokerages have also signaled support for Foghorn. BTIG reiterated a Buy rating and set an $11.00 price target, naming the stock as a top pick for the first half of 2026 in light of the anticipated phase 1 readout for FHD-909. Stifel likewise reaffirmed a Buy rating and maintained a $12.00 price target following the company’s equity raise. Both BTIG and Stifel have either initiated or reiterated coverage while noting the promise of Foghorn’s oncology-focused pipeline. Stifel’s commentary also referenced the prospects of FHD-909 as a program being advanced in partnership with Eli Lilly.
Coverage handoff
Jefferies has transferred lead coverage responsibility for Foghorn to analyst Amin Makarem as it begins tracking the story more closely ahead of the anticipated 2026 milestone.
This report focuses on coverage changes, near-term clinical timing, recent financing and corporate appointments as relevant signals for investors evaluating Foghorn’s progress toward its next clinical inflection point.