Shares of Tempest Therapeutics Inc (NASDAQ:TPST) surged by nearly 16% on Thursday, driven by an upgrade from H.C. Wainwright analysts who elevated the stock from a Neutral stance to a Buy rating, setting a new price target of $11.00.
This favorable reassessment follows Tempest's strategic reorientation announced in November 2025, wherein the company acquired four dual-targeting CAR-T therapy programs from Factor Bioscience and Erigen LLC. This transaction was structured as an all-stock deal, resulting in existing shareholders maintaining around 35% ownership of the pro forma entity, coupled with full warrant coverage.
According to Joseph Pantginis, the overseeing analyst at H.C. Wainwright, this development represents a resourceful turnaround, likening it to "making lemonade out of lemons." The acquisition secures an extended financial runway reaching into mid-2027, effectively providing Tempest approximately 18 additional months to progress the newly designated lead candidate, TPST-2003, towards initial clinical milestones.
The transaction also included a pivotal change in leadership, appointing Dr. Matt Angel, co-founder of Factor Bioscience, as the new CEO of Tempest. While the company intends to continue advancing its legacy compounds, amezalpat and TPST-1495, these programs are expected to require further capital infusion or external partnerships to sustain their development.
Pantginis characterized the company’s new strategic direction as "high-risk, high-reward," signifying a fundamental reset in its investment narrative. He emphasized the validated framework of CAR-T therapies along with encouraging early clinical data on the TPST-2003 program as principal justifications for the upgrade.