Gold prices slip slightly after recent gains; U.S. data eyed
On Tuesday, Canaccord Genuity analysts lowered the price target for Rocket Pharmaceuticals stock (NASDAQ:RCKT) to $11 from $34 while maintaining a Buy rating. Currently trading at $2.77, the stock has seen analyst targets range from $2 to $19, with InvestingPro data showing 9 analysts recently revising their earnings expectations upward for the upcoming period. The analysts cited changes in the anticipated launch timeline for RP-A501/Danon in the United States, now expected in 2028 instead of 2026, with a similar delay anticipated for the European Union.
The analysts continue to project peak sales of approximately $600 million for RP-A501/Danon in 2033/2034 and maintain a 70% probability of success. Additionally, assumptions for RP-A601/PKP2 remain unchanged, with the U.S. and EU launches expected in 2028/2029, potentially reaching peak sales of around $920 million in 2035, and a 30% probability of success.
The analysts removed lenti credits from their model, which previously accounted for $3 per share for Kresladi, $11 per share for RP-L102, and $1 per share for RP-L301. They noted that Rocket Pharmaceuticals is actively working towards resolving the Kresladi Complete Response Letter and completing the RP-L102 Biologics License Application, which could result in priority review vouchers and licensing revenue.
Although credits for the early-stage pipeline were also removed, the company continues to invest in its AAV BAG3 program. The analysts highlighted that progress in these areas could provide upside potential against their current estimates. With a current market cap of $298.43 million and trading below book value at 0.72x, InvestingPro analysis suggests the stock may be undervalued. Subscribers can access 12 additional ProTips and a comprehensive analysis of RCKT’s financial health and valuation metrics through InvestingPro’s detailed research reports.
In other recent news, Rocket Pharmaceuticals has faced multiple analyst downgrades following significant developments in its clinical trials. The company reported a patient death in its RP-A501 trial for Danon disease, leading to a clinical hold by the FDA. This incident has prompted Evercore ISI to downgrade Rocket Pharmaceuticals from Outperform to In Line, slashing the price target from $18.00 to $5.00. Similarly, JPMorgan downgraded the stock from Overweight to Neutral, reducing the price target from $44.00 to $7.00, due to concerns about regulatory hurdles following the clinical hold.
Goldman Sachs also downgraded the company from Buy to Sell, with a new price target of $2.00, citing uncertainty about the commercial viability of RP-A501. Scotiabank (TSX:BNS) adjusted its price target from $51.00 to $19.00 but maintained a Sector Outperform rating, acknowledging the potential for addressing safety concerns. Meanwhile, BofA Securities reduced its price target from $32.00 to $9.00, maintaining a Buy rating despite the challenges posed by the recent trial incident. These recent developments have introduced significant uncertainty regarding the future of Rocket Pharmaceuticals’ Danon disease program.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.