BMO maintains Rocket Pharmaceuticals Outperform rating

On Tuesday, BMO Capital Markets sustained their optimistic outlook on Rocket Pharmaceuticals (NASDAQ:RCKT) shares, maintaining an Outperform rating and a steadfast $50.00 price target. Currently trading at $5.42, the stock has drawn strong analyst interest, with InvestingPro data showing analyst targets ranging from $29 to $55, suggesting significant upside potential. The firm's analysts highlighted a series of factors that suggest a potential upswing for the biotechnology company in the upcoming quarter. They noted that the average daily trading volume of Rocket Pharmaceuticals shares in April 2025 has surged to approximately 5.3 million, a significant increase from the 2024 average of around 1.1 million shares per day. Technical indicators from InvestingPro show the stock is currently in oversold territory, while trading 80% below its 52-week high of $26.98.

Rocket Pharmaceuticals has experienced a notable lag behind the XBI, an exchange-traded fund tracking the biotech sector, since the beginning of the year. However, BMO Capital Markets anticipates a turnaround in the second quarter of 2025. Management is expected to provide updates on the company's Danon Disease program, which is considered a critical factor in the company's valuation.

The analysts at BMO Capital express confidence that there is approximately a 70% chance that the second-quarter updates regarding the Danon Disease program will be favorable. They project that positive news could propel Rocket Pharmaceuticals' stock by 20-40%. Conversely, they caution that less encouraging updates could result in a 10-20% decline in the company's stock value. Despite this risk, BMO Capital Markets reaffirms its Outperform rating, signaling their belief in the stock's potential for significant gains. For deeper insights into RCKT's valuation and 13 additional ProTips, including detailed financial health metrics and comprehensive analysis, visit InvestingPro.

In other recent news, Rocket Pharmaceuticals has made several notable developments. The company appointed Sarbani Chaudhuri as its new Chief Commercial & Medical (TASE:BLWV) Affairs Officer, bringing extensive experience from her roles at Johnson & Johnson and AstraZeneca (NASDAQ:AZN). This strategic hire is part of Rocket's efforts to strengthen its leadership and commercial capabilities. Meanwhile, the biotech sector, including Rocket Pharmaceuticals, experienced turmoil following the resignation of FDA's top vaccine official, Peter Marks, which has raised concerns about the regulatory landscape.

On the financial front, Cantor Fitzgerald has maintained its Overweight rating on Rocket Pharmaceuticals with a price target of $50, expressing confidence in the company's PKP2 arrhythmogenic cardiomyopathy gene therapy program. Similarly, BMO Capital Markets initiated coverage with an Outperform rating and the same price target, emphasizing Rocket's unique position in the gene therapy market. Scotiabank (TSX:BNS) has raised its price target for Rocket Pharmaceuticals to $52, noting the company's progress and upcoming milestones, including its Danon program update and phase 1 study on PKP2-ACM. Rocket Pharmaceuticals reported $372 million in cash reserves at the end of the fourth quarter of 2024, which is expected to support operations into the third quarter of 2026.

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