Chardan sets uniQure stock Buy rating, $38 target on gene therapy potential

On Tuesday, Chardan Capital Markets initiated coverage on uniQure BV (NASDAQ:QURE), a biotechnology company specializing in gene therapy treatments, with a Buy rating and a price target of $38.00. The stock, currently trading at $10.60, has shown significant volatility with a 26% decline over the past week, though it maintains an impressive 129% gain over the last six months. The firm’s analyst, Daniil Gataulin, took over the coverage due to a reallocation of resources within the firm.

The analyst highlighted the potential of uniQure’s adeno-associated virus (AAV)-based gene therapy pipeline, which is being developed to address unmet medical needs in Huntington’s disease. The pipeline also shows promise for treating other conditions such as epilepsy, ALS, and Fabry disease. According to Gataulin, the company’s shares present favorable risk-reward dynamics. InvestingPro analysis indicates the stock is currently undervalued, though investors should note the company’s weak gross profit margins and rapid cash burn rate.

The endorsement comes despite recent market reactions to changes at the Center for Biologics Evaluation and Research (CBER), including the resignation of Dr. Peter Marks on March 28. Gataulin sees the subsequent pull-back in uniQure’s shares as an attractive entry point for investors.

Chardan’s $38 price target on uniQure reflects confidence in the company’s gene therapy programs. The firm believes these treatments could offer significant benefits to patients with diseases that currently have limited therapeutic options.

The coverage assumes a positive outlook for uniQure, as the company continues to make strides in the field of gene therapy. Analysts maintain a strong buy consensus with price targets ranging from $18.69 to $72.05, suggesting significant upside potential. Investors will be watching closely as uniQure progresses with its clinical trials and seeks to bring new therapies to market. Get access to 10+ additional InvestingPro exclusive insights and real-time financial metrics to make more informed investment decisions.

In other recent news, uniQure announced the pricing of its public offering of 4,411,764 ordinary shares at $17.00 each, expecting to raise approximately $75 million. This offering is anticipated to close around January 10, 2025, with Leerink Partners, Stifel, and Guggenheim Securities managing the bookrunning. H.C. Wainwright reaffirmed its Buy rating for uniQure, maintaining a price target of $70, citing optimism about the company’s AMT-130 program for Huntington’s disease. The firm highlighted the significance of the FDA’s agreement on key elements of an accelerated approval path for AMT-130. Additionally, uniQure has completed enrollment for the first cohort in a Phase I/IIa trial of AMT-191, an investigational treatment for Fabry disease, and plans to proceed with dosing the second cohort. CSL (OTC:CSLLY) Behring, in collaboration with uniQure, confirmed the long-term efficacy of HEMGENIX in treating hemophilia B, based on four-year results from the HOPE-B study. These developments reflect uniQure’s ongoing progress in advancing its gene therapy pipeline for various serious conditions.

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