Bullish indicating open at $55-$60, IPO prices at $37
On Monday, Clear Street initiated coverage on shares of Regenxbio Inc . (NASDAQ:RGNX), a biotechnology company focused on gene therapy, with a Buy rating and a price target of $50.00. Currently trading at $7.15, the stock sits well below the analyst consensus range of $14-$52, according to InvestingPro data, which shows the company is currently undervalued based on its Fair Value analysis. The firm underscored Regenxbio’s position as a leading figure in the gene therapy space, particularly highlighting the success of its adeno-associated virus (AAV) platform which has been validated by licensing agreements with various companies.
One such agreement mentioned is with AveXis/Novartis for Zolgensma, a treatment that has demonstrated the commercial viability of Regenxbio’s technology. Clear Street’s analysis points to Regenxbio’s nearing transition from a developmental stage to a commercial entity. This shift is underpinned by its late-stage pipeline assets that are approaching potential approval for significant health indications.
The analyst at Clear Street noted the limited competition in the Duchenne Muscular Dystrophy market and the potential for gene therapy to provide long-lasting solutions for retinal diseases. These factors contribute to the analyst’s view of Regenxbio as an investment with high upside potential.
The report also includes a valuation perspective, mentioning Regenxbio’s enterprise value at approximately $200 million. The analyst believes that there is substantial room for growth in the company’s value, particularly if its two leading programs are successful. The coverage initiation reflects confidence in Regenxbio’s ability to realize its potential in the near term. With a market capitalization of $360.62 million and an overall Financial Health score of "FAIR" on InvestingPro, investors can access detailed valuation metrics and 8 additional ProTips with a subscription.
In other recent news, Regenxbio Inc. reported its fourth-quarter 2024 earnings, revealing revenue of $21.2 million and a net loss of $51.2 million, which was better than expected. For the full year, the company achieved $83.3 million in revenue and a net loss of $227.1 million. H.C. Wainwright adjusted its price target for Regenxbio to $34, maintaining a Buy rating, influenced by the company’s submission of a Biologics License Application for RGX-121, a potential first-in-class gene therapy for Mucopolysaccharidosis II. Meanwhile, Raymond (NSE:RYMD) James raised its price target to $29, emphasizing the safety profile of Regenxbio’s RGX-202 therapy following the AFFINITY DUCHENNE trial results.
Baird also reaffirmed an Outperform rating with a $39 target, citing promising interim data from the same trial. Stifel maintained a Buy rating with a $40 target, pointing to the anticipated approval of RGX-121 as a pivotal moment for Regenxbio’s gene therapy commercialization. The company highlighted the positive biomarker data from the AFFINITY DUCHENNE trial, showing significant microdystrophin expression levels in young patients. Regenxbio’s ongoing collaborations, including with AbbVie (NYSE:ABBV) on retinal disease treatments, are seen as potential long-term growth drivers. These developments underscore the company’s strategic focus on advancing its gene therapy pipeline and addressing unmet medical needs.
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