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Investing.com - Citi initiated coverage on Solid Biosciences (NASDAQ:SLDB) with a buy rating and a $14.00 price target, citing significant potential in the Duchenne muscular dystrophy (DMD) market. The stock, currently trading at $4.74, is considered undervalued according to InvestingPro analysis, with analyst targets ranging from $10 to $20.
The research firm highlighted the company’s attractive risk/reward profile, noting SLDB trades at approximately $100 million enterprise value compared to potential peak U.S. sales of $2.5-3 billion in DMD. InvestingPro data shows the company holds more cash than debt and maintains a strong current ratio of 10.89, though it’s currently burning through cash rapidly.
Citi’s analysis suggests SLDB’s investment case has strengthened following recent safety concerns with key competitor Sarepta Therapeutics (NASDAQ:SRPT)’ Elevidys therapy, creating an opportunity for Solid Biosciences’ SGT-003 gene therapy. Get deeper insights into SLDB’s competitive positioning and 8 additional key ProTips with an InvestingPro subscription.
The firm pointed out that SGT-003 shows no evidence of liver toxicity, potentially due to its more muscle-tropic vector, along with stronger efficacy metrics on muscle restoration compared to competing treatments.
A DMD market survey conducted by Citi supports the thesis that a safer DMD gene therapy could gain rapid market adoption, even if it’s not the first to market or more effective than existing options.
In other recent news, Solid Biosciences has seen multiple developments regarding its gene therapy programs. The company is actively progressing with its SGT-003 therapy for Duchenne muscular dystrophy (DMD), with promising biomarker data already reported and more updates anticipated by the end of 2025. Solid Biosciences’ financial health appears robust, with over $300 million in cash reserves, expected to support the company through significant upcoming milestones. Analyst firms have weighed in on these developments, with Cantor Fitzgerald maintaining an Overweight rating and a $16.00 price target, while H.C. Wainwright reaffirmed a Buy rating with a $20.00 price target, highlighting the favorable safety profile of SGT-003 compared to competitors. Truist Securities also reiterated a Buy rating with a $16.00 target, emphasizing the company’s strategic regulatory engagement. Conversely, Piper Sandler adjusted its price target to $17.00, maintaining an Overweight rating, while Jefferies lowered its target to $15.00 but kept a Buy rating. These analyst perspectives reflect confidence in Solid Biosciences’ pipeline and financial strategy, despite the challenges faced by competitors in the gene therapy space.
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