Guggenheim reiterates Buy rating on Moonlake Immunotherapeutics stock

Published 05/08/2025, 18:14
Guggenheim reiterates Buy rating on Moonlake Immunotherapeutics stock

Investing.com - Guggenheim has reiterated its Buy rating and $80.00 price target on Moonlake Immunotherapeutics (NASDAQ:MLTX) following the company’s second-quarter 2025 financial results. According to InvestingPro data, analysts maintain a Strong Buy consensus with price targets ranging from $65 to $104, suggesting significant upside potential. The stock currently trades near its 52-week high of $58.26.

The firm highlighted that Moonlake’s Phase III VELA clinical trial results for sonelokimab in hidradenitis suppurativa remain on track for release around September 2025. The last patient visit has been completed in the VELA-2 trial, while VELA-1 is expected to complete in August, with data analysis taking approximately 4-6 weeks.

Moonlake intends to submit a Biological License Application for sonelokimab in the United States by mid-2026. The company previously announced positive interim results from its Phase II LEDA study evaluating the drug in palmoplantar pustulosis, with primary endpoint readout scheduled for the fourth quarter of 2025.

Additional clinical programs for sonelokimab are progressing as planned, with readouts scheduled throughout 2026, including Phase III VELA-TEEN for adolescent hidradenitis suppurativa, Phase III IZAR for psoriatic arthritis, and Phase II S-OLARIS for axial spondyloarthritis.

Moonlake reported approximately $425.1 million in cash at the end of the second quarter, with up to an additional $425 million accessible through its debt facility with Hercules Capital (NYSE:HTGC), extending the company’s expected cash runway into 2028 to fund sonelokimab’s anticipated 2027 launch and ongoing clinical trials. InvestingPro analysis shows the company maintains a strong financial position with a current ratio of 21.11 and more cash than debt on its balance sheet. Get detailed insights and 11 additional ProTips for MLTX with an InvestingPro subscription, including comprehensive analysis of the company’s financial health and growth prospects.

In other recent news, Moonlake Immunotherapeutics has been the focus of several analyst evaluations and potential acquisition talks. H.C. Wainwright reaffirmed its Buy rating with a $100 price target, citing the anticipated release of top-line data from Moonlake’s Phase 3 VELA program for sonelokimab in September. Clear Street also reiterated its Buy rating and set a $108 price target, expressing confidence in the potential of Moonlake’s SLK therapy. Meanwhile, RBC Capital maintained an Outperform rating with a $67 price target amidst speculation about a potential acquisition by Merck (NSE:PROR), which reportedly proposed a bid exceeding $3 billion earlier this year.

Guggenheim echoed this sentiment, reaffirming its Buy rating and an $80 price target, while noting Merck’s nonbinding offer for Moonlake. The Financial Times reported that Merck’s acquisition talks with Moonlake could resume, suggesting strategic interest in Moonlake’s late-stage clinical trials. Moonlake’s recent financial results for the first quarter of 2025 revealed successful completion of enrollment for the VELA program, achieved faster than industry benchmarks. This efficiency may indicate strong execution capabilities by Moonlake’s team. The company is currently conducting two Phase III studies for sonelokimab, with results expected in September 2025.

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