Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Barclays initiated coverage on Scholar Rock (NASDAQ:SRRK) with an Overweight rating and a price target of $45.00. The stock, which has surged nearly 290% over the past year, currently trades above its InvestingPro Fair Value.
The biopharmaceutical company, valued at $3.1 billion, focuses on developing antibody therapeutics for neuromuscular disorders, rare diseases, and oncology, according to Barclays. With a strong liquidity position reflected in its 6.3x current ratio and moderate debt levels, the company maintains financial flexibility for its development programs. InvestingPro analysis reveals 8 additional key insights about Scholar Rock’s financial health and growth prospects.
Scholar Rock’s lead asset, apitegromab, an anti-latent myostatin antibody, has completed a Phase 3 trial in spinal muscular atrophy (SMA), with an FDA approval decision expected in September 2025.
The company’s R&D pipeline includes SRK-439, another anti-latent myostatin antibody, with plans to submit an IND for exploration in rare neuromuscular disorders in the second half of 2025.
Barclays sees potential near- and medium-term upside for Scholar Rock shares based on approval and commercial launch assumptions, as well as historical performance of new launches in the SMA market.
In other recent news, Scholar Rock reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of -0.98, which was lower than the anticipated -0.66. This represents a 48.48% negative surprise, raising concerns among investors about the company’s financial performance. Meanwhile, Raymond James reiterated its Strong Buy rating on Scholar Rock, maintaining a price target of $53.00, as the company approaches a key Prescription Drug User Fee Act (PDUFA) date for its drug candidate, apitegromab. Jefferies also initiated coverage on Scholar Rock with a Buy rating and a price target of $50.00, expressing confidence in apitegromab’s potential FDA approval for spinal muscular atrophy (SMA). However, BMO Capital lowered its price target to $45.00 from $57.00, citing potential delays due to issues at Novo’s Catalent facilities that could impact the PDUFA date for apitegromab. These developments reflect a mix of optimism and caution among analysts regarding Scholar Rock’s future prospects.
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