BofA Securities initiates coverage on Taysha Gene Therapies stock with Buy rating

Investing.com - BofA Securities initiated coverage on Taysha Gene Therapies (NASDAQ:TSHA) with a Buy rating and a price target of $8.00 on Friday. The stock, currently trading at $2.55, has shown strong momentum with a 45% gain over the past six months. According to InvestingPro data, the company holds more cash than debt on its balance sheet.

The firm’s analysis focuses on TSHA-102, Taysha’s gene therapy under development for Rett syndrome, a severe neurodevelopmental disease. BofA Securities noted the therapy has potential to become the first approved disease-modifying treatment for the condition.

Early clinical data from a small patient group (n=10) indicates that treated patients can gain or regain developmental milestones, which BofA Securities described as "a differentiated result from current options."

Taysha Gene Therapies recently reached alignment with the FDA on a pivotal trial design for TSHA-102. The company expects to initiate the trial in the third quarter of 2025, with the first patient likely dosed before year-end.

BofA Securities views TSHA-102 as "an attractive commercial opportunity" for the company, citing promising signs of clinical efficacy and a clear path to regulatory approval.

In other recent news, Taysha Gene Therapies has been in the spotlight with several developments. Cantor Fitzgerald has maintained its Overweight rating and a $13 price target on the company, citing positive Phase 1/2 data and a regulatory update for its TSHA-102 therapy aimed at treating Rett syndrome. This comes as the company prepares to disclose details of its NGNE registrational trial later this month, marking a significant milestone in its clinical development program. Meanwhile, Canaccord Genuity has raised its price target for Taysha Gene Therapies to $11 from $9, reflecting an increased probability of success for TSHA-102 and a $200 million offering through shares and prefunded warrants.

Additionally, Taysha Gene Therapies announced an increase in authorized shares from 400 million to 700 million, following approval from stockholders during the company’s 2025 annual meeting. The meeting also saw the election of two directors and the ratification of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These strategic moves underscore the company’s focus on advancing its gene therapy pipeline to address unmet medical needs. The developments have been met with positive sentiment among stakeholders, although this optimism has yet to be fully reflected in the company’s market valuation.

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