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On Tuesday, Deutsche Bank (ETR:DBKGn) initiated coverage on shares of Biohaven Pharmaceutical (TADAWUL:2070) Holding (NYSE:BHVN) with a Buy rating and a price target of $65.00. The firm’s analysts cited the leadership of CEO Vlad Coric and the company’s potential for steady value creation as key factors in their positive outlook. According to InvestingPro data, analyst consensus remains strongly bullish with price targets ranging from $56 to $77, suggesting significant upside potential from current levels.
Biohaven, which emerged as a new entity following the acquisition of the original company by Pfizer (NYSE:PFE) in 2022, has seen its market capitalization increase from between $300 million to $400 million post-spinout to a recent valuation of $3.5 billion to $4 billion. This growth is attributed to the management’s ability to create value and the market’s view of the company as a potential acquisition target. InvestingPro analysis shows the stock has demonstrated significant volatility, with a beta of 3.91, making it particularly sensitive to market movements.
The analysts at Deutsche Bank believe that Biohaven’s current share price presents a significant opportunity for growth, especially if the company’s mid to late-stage clinical assets, which include troriluzole, taldefgrobep alfa, and BHV-7000, succeed. These assets are seen as key drivers for the company heading into the year 2025.
However, the analysts also noted that the company’s high cash burn rate and the need for anticipated financing could be concerns for investors who are more risk-averse. Biohaven’s pro forma cash of approximately $642 million is expected to provide around a year of financial runway. InvestingPro data reveals that while the company holds more cash than debt and maintains a healthy current ratio of 2.89, it remains unprofitable with significant negative EBITDA. Get access to 10+ additional ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
Despite these concerns, Deutsche Bank’s initiation of coverage with a Buy rating and a $65 price target reflects confidence in Biohaven’s strategy and leadership as the company advances its clinical programs and explores potential market opportunities.
In other recent news, Biohaven Pharmaceutical Holding has been the subject of several analyst reports. Cantor Fitzgerald highlighted a favorable risk/reward profile for biotech stocks, particularly those innovating in neurology and psychiatry, and underscored two companies, Harmony (JO:HARJ) Biosciences and Prothena Corporation, as notably undervalued. Meanwhile, H.C. Wainwright maintained a Buy rating on Biohaven, highlighting significant progress in the company’s research and development efforts, specifically the promising results from the Multiple Ascending Dose study of its novel IgG degrader, BHV-1300.
Bernstein also maintained its Outperform rating on Biohaven, expressing strong conviction in the company’s degrader platform’s therapeutic potential. Similarly, RBC Capital Markets increased its price target for Biohaven from $58 to $61, reflecting the firm’s anticipation of investor focus on upcoming catalysts, particularly the resubmission of troriluzole to the FDA. The firm believes that troriluzole represents a high reward/risk catalyst for Biohaven.
Baird reaffirmed its Outperform rating for Biohaven, maintaining a $60.00 price target on the company’s stock. The endorsement comes despite a setback in a Phase 3 clinical trial for Biohaven’s investigational drug, taldefgrobep. However, the firm highlighted the observed positive changes in body composition during the study as a promising indicator for Biohaven’s forthcoming Phase 2 obesity trial. These are the latest developments in the ongoing analysis of Biohaven’s potential.
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