Engene stock maintains Outperform rating at Raymond James on strong execution

Published 12/06/2025, 18:48
Engene stock maintains Outperform rating at Raymond James on strong execution

Engene Holdings Inc. (NASDAQ:ENGN), currently trading at $3.05 with a market cap of $164 million, maintained its Outperform rating and $23.00 price target from Raymond (NSE:RYMD) James following the company’s fiscal second-quarter 2025 financial results released Thursday. InvestingPro analysis suggests the stock is currently undervalued, with analysts’ targets ranging from $7 to $34.

The gene therapy company reported a quarterly net loss of $25.8 million and earnings per share of $(0.51), performing better than Raymond James’ estimates of a $27.9 million loss and $(0.55) EPS. Operating expenses increased by just 2% quarter-over-quarter, showing stabilization after a significant 52% jump in the first fiscal quarter. The stock has faced headwinds this year, with a YTD return of -51.6%.

Engene continues to advance enrollment in its pivotal LEGEND study for high-risk BCG-unresponsive non-muscle invasive bladder cancer (NMIBC) with carcinoma in situ, alongside expansion cohorts in other NMIBC settings. The company’s approach utilizes non-viral gene therapy technology that Raymond James views as having "differentiated ease-of-use relative to competitors."

The firm ended the quarter with approximately $252 million in cash and equivalents, which management expects will fund operations into 2027, maintaining previous guidance. With a strong current ratio of 17.16 and an overall Financial Health score of "FAIR" according to InvestingPro, this runway provides substantial support for the company’s ongoing clinical development programs.

Raymond James cited its "constructive view" of Engene’s technology while acknowledging challenges from "the competitive landscape in NMIBC and market uncertainty in the BCG-unresponsive setting" as factors in maintaining its rating and price target. The broader analyst consensus remains bullish with a 1.7 rating (where 1 is Strong Buy). Discover more detailed financial metrics and analysis with InvestingPro.

In other recent news, enGene Holdings Inc. announced the approval of its 2025 Employee Stock Purchase Plan, allowing eligible employees to acquire company shares. This plan, approved during the Annual General Meeting, aligns employee interests with shareholders by reserving 2,000,000 common shares for issuance. Additionally, the company confirmed the re-election of directors Gerald Brunk and Dr. Richard Glickman, along with the appointment of the company’s auditor. In management changes, Chief Medical (TASE:BLWV) Officer Dr. Raj Pruthi will step down on June 16, 2025, with a transition plan in place to ensure continuity in strategic and operational activities. Meanwhile, Amy Pott has been appointed as the Chief Global Commercialization Officer, tasked with leading commercialization efforts for enGene’s products. Her role will be crucial as the company prepares for a Biologics License Application to the FDA in mid-2026. Furthermore, Citizens JMP has reiterated its Market Outperform rating for enGene Holdings, maintaining a price target of $18.00, emphasizing the significance of the company’s ongoing LEGEND cohort study. This study, part of enGene’s efforts in the NMIBC treatment landscape, is anticipated to provide pivotal data in the second half of 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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