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On Tuesday, Goldman Sachs initiated coverage on Silence Therapeutics (NASDAQ:SLN), currently trading at $4.92 with a market cap of $232.3 million, with a Sell rating and a price target of $6.00. According to InvestingPro analysis, the company’s overall financial health score is rated as "FAIR," with particularly concerning metrics in profitability and price momentum. The firm’s analysis suggests that while Silence Therapeutics is developing promising siRNA therapies, particularly its lead asset zerlasiran, which targets lipoprotein(a) for the treatment of atherosclerotic cardiovascular disease (ASCVD), the product faces significant competition and challenges.
Zerlasiran has shown promise in reducing Lp(a) levels, which is a key factor in managing ASCVD risks. However, Goldman Sachs points out that the drug’s time-averaged data and levels between doses appear undistinguished from existing options. The treatment’s diminishing effects between quarterly and semi-annual doses also imply that more frequent administration may be necessary, potentially hindering its ability to stand out in a market that favors less frequent dosing.
The analyst also highlighted that Silence Therapeutics lags behind competitors in terms of clinical development timelines. While InvestingPro data shows the company holds more cash than debt and maintains a strong current ratio of 9.31, its rapid cash burn rate and negative free cash flow of -$58.76 million raise concerns about funding a Phase 3 cardiovascular outcomes trial (CVOT), estimated to cost around $300 million. Goldman Sachs sees challenges for zerlasiran to compete effectively.
Furthermore, the firm believes that finding a development partner prior to the expected results from Novartis (SIX:NOVN)’s HORIZON study in the first half of 2026 could prove difficult. Any delays in the progression of the CVOT for zerlasiran could further diminish its value. However, if the HORIZON study yields positive results, it may de-risk the Lp(a) treatment pathway and potentially attract partners for Silence Therapeutics’ product.
In the interim, Goldman Sachs expects Silence Therapeutics’ stock to stay range-bound and sees less upside potential compared to other companies within their coverage universe. The stock has already fallen 77.7% over the past year and trades near its 52-week low. Discover more insights about SLN’s valuation and 12 additional key metrics with a InvestingPro subscription, including exclusive access to comprehensive Pro Research Reports covering 1,400+ US stocks.
In other recent news, Silence Therapeutics has been in the spotlight with analysts from H.C. Wainwright and BMO Capital both maintaining their previous ratings and price targets on the company’s stock. H.C. Wainwright reiterated a Buy rating with a target of $75.00, expressing continued optimism about Silence Therapeutics’ RNAi-based therapy, zerlasiran. The firm’s analyst, Patrick Trucchio, highlighted the potential of zerlasiran to differentiate itself from competitors and projected that the drug could generate over $1 billion in annual revenue if approved.
Meanwhile, BMO Capital maintained its Outperform rating and $67.00 price target on Silence Therapeutics. The firm’s stance comes after a survey of investors revealed that approximately 70% anticipate a partnership for zerlasiran to be formed following the cardiovascular outcome trial results for Pelacarsen.
In further developments, Silence Therapeutics presented promising end-of-treatment data from its Phase 2 trial, ALPACAR-360, during the American Heart Association (AHA) Scientific Sessions. The data showed potential efficacy of zerlasiran, with more than 80% mean time-averaged placebo-adjusted reductions from baseline in Lp(a) concentrations over a 36-week period.
Despite these positive developments, Silence Therapeutics’ shares experienced a significant drop, which analysts from both H.C. Wainwright and BMO Capital suggest may be an overreaction. The firms maintain their confidence in the company’s prospects, with BMO Capital viewing the current lower stock price as an opportunity for investors.
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