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Investing.com - Mizuho (NYSE:MFG) lowered its price target on Adverum Biotechnologies (NASDAQ:ADVM) stock to $12.00 from $16.00 on Wednesday, while maintaining an Outperform rating on the shares. The stock, currently trading at $2.58, sits well below its 52-week high of $10.14, with analysts’ targets ranging from $4 to $33, according to InvestingPro data.
The price target reduction represents a 25% decrease, which Mizuho attributed to updated first-quarter 2025 financials and an increase in the weighted average cost of capital assumption to 16% from 15%, partially offset by decreased longer-term operating expenses. With a market capitalization of just $53.4 million, the company faces significant challenges, as reflected in its EBITDA of -$154.8 million over the last twelve months.
Despite the lower price target, Mizuho maintained its positive view on Adverum’s lead asset ixo-vec, which it considers a potential best-in-class gene therapy candidate for wet age-related macular degeneration.
Mizuho expressed satisfaction with the progress of ixo-vec’s first pivotal Phase 3 study but highlighted concerns about Adverum’s limited cash position, noting that a second Phase 3 study for ixo-vec is still needed.
The research firm emphasized that a near-term announcement of either a meaningful financing or a significant partnership or business development deal for ixo-vec would be critical for the company, while maintaining its Outperform rating based on the risk/reward profile. For deeper insights into Adverum’s financial health and detailed analysis, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Adverum Biotechnologies announced several key developments following its 2025 Annual Meeting. Shareholders approved the repricing of underwater stock options, affecting executives such as CEO Laurent Fischer and other key officers, with new exercise prices set at $10.14. Additionally, the company’s 2024 Equity Incentive Award Plan was amended and restated, and Ernst & Young LLP was ratified as the independent registered public accounting firm for 2025. In related updates, RBC Capital Markets adjusted its outlook on Adverum Biotechnologies by reducing the stock price target to $5.00 from $10.00, maintaining a Sector Perform rating. This revision comes in light of Adverum’s financial challenges, with $126 million in funds expected to last into the second half of 2025, and increased operational expenses. Adverum is progressing with its pivotal studies for wet age-related macular degeneration, with the first U.S.-based study having recently commenced. The company also plans a global pivotal study in the latter half of 2025 and a follow-up from the LUNA study in the fourth quarter of 2025. RBC Capital’s cautious stance stems from past clinical challenges and a competitive market landscape.
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