Rallybio downgraded to Hold from Buy at Jefferies

Jefferies analyst Eun Yang downgraded Rallybio to Hold from Buy with a price target of $1.50, down from $7. The company is extending its cash into mid-2026 by reducing its workforce by 45% and is exploring options for the non-lead programs, the analyst tells investors in a research note. However, the firm says Rallybio’s lead program has been slow to develop and it is not clear when the regulatory path to approval will emerge. With no apparent key pipeline catalyst near-term, the share selloff “raises risk of potentially dilutive financing,” adds Jefferies.