Shares of Cue Biopharma surged as much as 7.9% to $39.99 on September 19 after B. Riley Securities launched coverage with a Buy rating and an $83 price target — implying the stock could more than double from here. The catalyst is a bet on CUE-221, the company's lead experimental drug for chronic spontaneous urticaria, a persistent and debilitating form of hives affecting millions worldwide. B. Riley Bets Cue Biopharma Can Double From Here — But Can a Tiny, Cash-Burning Biotech Deliver on an $83 Dream?
Shares jumped 7.9% to $39.99 after B. Riley Securities initiated coverage of Cue Biopharma with a Buy rating and an $83 price target — implying roughly 107% upside from Friday's close. The call electrified a stock already up 313% year-to-date, but the bull case rests almost entirely on one mid-stage drug that Cue doesn't even control the key trial for.
The Analyst Sees a $234 Million Company Hiding a Blockbuster Drug
B. Riley analyst Mayank Mamtani argued that Cue's enterprise value of roughly $234 million "does not fully capture the potential" of its experimental drugs, particularly CUE-221, an allergy antibody in Phase 2 trials for chronic hives with results expected by Q3 2026.
CUE-221 is described as neutralizing IgE — the molecule behind allergic reactions — at roughly four to eight times the potency of Xolair, the only approved drug in its category. If those claims hold in larger trials, the commercial opportunity is enormous.
The Phase 2 Data Cue Needs Isn't In Its Hands
In a 15-patient early study, one dose held the allergy marker undetectable for 14 weeks. Licensor Ascendant is now running a 145-patient placebo- and Xolair-controlled Phase 2 trial in China, with topline results expected by end of Q3 2026.
Critically, Cue does not control the protocol, the data, or the probability that the FDA accepts results from this foreign-run study. Investors are buying a lottery ticket whose drawing is managed by someone else.
Cash Is Thin and Dilution Risk Is Real
The company is "quickly burning through cash," holding roughly $67 million after a $50 million financing in July.
Cue executed a 1-for-30 reverse stock split in April 2026 just to maintain its Nasdaq listing — a classic red flag of financial stress.
Insiders have sold $2 million in shares over the past year versus just $100,000 bought.
A Strong Rally, but the Valuation Already Prices In Optimism
The stock has surged 32% in the past week alone and 313% year-to-date.
Given mixed fundamental scores and ongoing unprofitability, some analysts caution the stock may already be overvalued. The coming weeks will be decisive: Phase 2 hives data will either validate B. Riley's moonshot target or expose it as premature. Until those results land, CUE remains a high-conviction bet on a single clinical readout.