Cantor Fitzgerald lifts Soleno Therapeutics stock target to $123

Published 27/03/2025, 13:26
Cantor Fitzgerald lifts Soleno Therapeutics stock target to $123

On Thursday, Cantor Fitzgerald exhibited confidence in Soleno Therapeutics Inc. (NASDAQ:SLNO), a company with a market capitalization of $2.25 billion, by nearly doubling its price target from $67.00 to $123.00, while retaining an Overweight rating on the company’s shares. Trading at $48.97, the stock has gained over 14% in the past year. The adjustment follows an optimistic outlook on the company’s prospects, particularly regarding its upcoming product launch. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $70 to $123.

Analysts at Cantor Fitzgerald highlighted several factors underpinning their positive stance on Soleno Therapeutics. They cited the drug’s clean label and supportive pricing, which is estimated at around $466,000 per year based on the mean weight from clinical programs. The firm anticipates a robust market reception for the drug, given the significant demand for effective treatments in this area. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 15.68, though it currently operates at a loss with negative earnings of $4.38 per share.

The enthusiasm for Soleno Therapeutics is also reflected in the sentiments of investors, who, according to Cantor Fitzgerald, held small positions but expressed readiness to increase their stakes upon regulatory approval of the drug. The bullish outlook is further bolstered by the drug’s potential to dominate in treating a rare disease with a high unmet medical need.

Cantor Fitzgerald’s analysis pointed to compelling clinical data and life-changing patient stories as key drivers for the drug’s success. The rare disease targeted by Soleno’s therapy is characterized by earlier mortality, and the community around this condition is highly supportive and advocating for the drug. The disease’s clear diagnostic markers and early-life onset make patients easily identifiable, which could facilitate the drug’s adoption.

The firm also praised Soleno Therapeutics’ team for their patient-first approach, which has been a cornerstone of their strategy from the outset. This approach, combined with the drug’s potential market impact, has positioned Soleno Therapeutics as a top pick for Cantor Fitzgerald and a company worth investing in ahead of its anticipated product launch. InvestingPro forecasts suggest a significant turnaround, with analysts expecting positive earnings of $7.31 per share in FY2025. For deeper insights into Soleno’s financial health, growth prospects, and 8 additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Soleno Therapeutics has received FDA approval for Vykat XR, a treatment for hyperphagia associated with Prader-Willi syndrome. This approval marks a significant milestone for the company, as Vykat XR is the first therapy specifically targeting this condition. Analysts from Baird have upgraded Soleno’s price target to $102, citing the approval as a critical catalyst for the company’s valuation. Stifel analysts have maintained their Buy rating with a $74 target, expressing optimism about the drug’s market potential and highlighting its strong position for a successful launch. The drug’s clean label and favorable pricing, averaging around $466,000, are seen as advantageous for its commercial success. Soleno has also introduced Soleno One™, a patient support program to facilitate access to Vykat XR. The drug is expected to be available in the U.S. by April 2025. The approval is based on a comprehensive clinical program, including a Phase 3 trial, which demonstrated Vykat XR’s effectiveness in managing symptoms of Prader-Willi syndrome.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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