NEW YORK (TheStreet) -- Shares of Seres Therapeutics (MCRB) - Get Reportwere jumping 10.28% to $10.73 in afternoon trading on Friday as FBR Capital said it's bullish on the Cambridge, MA-based microbiome therapeutics platform company, citing its drug development partnership with Nestle (NSRGY).

The firm maintained its "overweight" rating on the stock, but lowered its price target to $23 from $43, TheFly reports.

Additionally, Seres reported lower-than-expected second quarter results before yesterday's market open. 

The company posted a loss of 70 cents per share, missing analysts projected loss of 46 cents per share. Revenue came in at $3 million, falling short of Wall Street's expectations of $4.2 million.

Last month, Seres said that mid-stage studies of its lead drug had failed, prompting a series of sell-offs by investors. FBR Capital called these sell-offs "overdone," and noted that the company has a few promising items in its pipeline.

"We look at MCRB as the leader in advancing the microbiome approach to treating chronic diseases and infections," the firm said, according to StreetInsider. "While we acknowledge that the near-term focus of investors may be how the primary endpoint of reducing the relative risk of infection recurrence in the SER-109 Phase II ECOSPOR clinical study in recurrent Clostridium difficile infection (CDI) was not achieved, we think the stock sell-off since July 29 is overdone."

Development of the company's other clinical-stage assets are partnered with Nestle, providing upside to the stock, the firm added, according to TheFly.

Seres said existing cash will be able to support its capital expenditures well into 2018. 

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