Craig-Hallum initiates Neurogene stock with buy rating on Rett therapy

Craig-Hallum initiated coverage of Neurogene (NASDAQ:NGNE) Tuesday with a buy rating and a $50 price target, citing the potential of its lead gene therapy program for Rett syndrome. Currently trading at $19.20, the stock appears undervalued according to InvestingPro analysis, with analyst targets ranging from $24 to $72.

The research firm highlighted NGN-401, which utilizes Neurogene’s EXACT regulatory technology, as having "best in class potential" among treatments for Rett syndrome, a rare genetic neurological disorder.

The program benefits from rapid FDA communication through the START program and Neurogene’s in-house AAV manufacturing capabilities, which support future regulatory filing and commercialization efforts.

Craig-Hallum noted the therapy has "an optimal product profile and competitive advantages" that position it as a potentially superior gene therapy option for Rett syndrome patients.

Several upcoming catalysts could drive share appreciation, including a regulatory update expected in the first half of 2025 and Phase I/II clinical data from 11 patients in the second half of 2025. Despite recent volatility, with shares down 12% over the past week, InvestingPro subscribers can access detailed analysis and 8 additional ProTips to better evaluate this biotech opportunity.

In other recent news, Neurogene has been the subject of several updates from analysts and industry events. BMO Capital recently raised its price target for Neurogene to $26 from $22, maintaining an Outperform rating. This change follows the company’s updated monitoring protocol for its NGN-401 treatment, which has shown effective management of ferritin levels in patients. Meanwhile, Stifel analysts have maintained a Buy rating with a price target of $46, noting the ongoing competitive dynamics in the gene therapy sector. However, Baird has downgraded Neurogene from Outperform to Neutral, lowering the price target to $24 from $38, citing increased regulatory uncertainty under new FDA leadership. Neurogene also presented a treatment strategy for hemophagocytic lymphohistiocytosis (HLH) at the American Society of Gene and Cell Therapy meeting. This strategy includes a monitoring and treatment algorithm designed to detect and treat HLH early. The company is currently conducting a Phase 1/2 trial of its NGN-401 gene therapy for Rett syndrome, aiming to balance efficacy and safety. Investors and analysts continue to watch for further developments, particularly regarding Neurogene’s regulatory strategies and upcoming data releases.

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