Bullish indicating open at $55-$60, IPO prices at $37
On Monday, H.C. Wainwright analyst Yi Chen adjusted the price target for Regenxbio Inc . (NASDAQ:RGNX) shares, reducing it to $34.00 from the previous $36.00 while continuing to recommend a Buy rating for the stock. The revision follows Regenxbio’s recent disclosure of its fourth quarter and full-year 2024 financial outcomes. The company reported fourth-quarter revenue of $21.2 million and a net loss of $51.2 million, or ($1.01) per share, which was more favorable than the anticipated loss of $65.9 million. For the full year of 2024, Regenxbio’s revenue reached $83.3 million, with a net loss of $227.1 million, or ($4.59) per share. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with analysts setting price targets ranging from $14 to $52.
Regenxbio has recently achieved a significant milestone by completing its Biologics License Application (BLA) submission for clemidsogene lanparvovec (RGX-121) in March 2025. The company is seeking accelerated approval for this treatment, which is proposed to be a first-in-class gene therapy for Mucopolysaccharidosis II (MPS II), also known as Hunter syndrome. The BLA submission is a critical step towards potentially receiving approval from the Food and Drug Administration (FDA) in the second half of 2025. InvestingPro analysis shows the company maintains a healthy current ratio of 2.69, with more cash than debt on its balance sheet, though it’s currently burning through cash rapidly. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report.
If approved, RGX-121 would become the first gene therapy and one-time treatment for MPS II. This could not only provide a new treatment option for patients but also position Regenxbio to receive a Priority Review Voucher, which is a significant incentive provided by the FDA to encourage the development of treatments for rare diseases.
Chen’s report highlighted the company’s potential and the anticipated approval of RGX-121 as key factors in maintaining the Buy rating. The analyst’s valuation of Regenxbio reflects an estimated market value of the firm at $1.73 billion, or $34 per share. The revised 12-month price target takes into account the latest financial data and the company’s progress in its BLA submission for RGX-121. Chen stated, "We believe that FDA could grant approval in 2H25, which would make RGX-121 the first gene therapy and one-time treatment approved for MPS II and allow REGENXBIO to receive a Priority Review Voucher. Our current estimated market value of the firm is $1.73B, or $34 per share. Therefore, we reiterate our Buy rating while modulating our 12-month price target to $34 from $36 per share." The stock has seen a significant 11.8% return over the past week, though it remains down 48% over the past six months, according to InvestingPro data. Analysts anticipate sales growth in the current year despite current challenges.
In other recent news, Regenxbio Inc. reported its fourth-quarter 2024 earnings, with an earnings per share (EPS) of -1.01, surpassing the forecasted -1.13. However, the company experienced a revenue shortfall, reporting $21.21 million against a forecast of $23.47 million. Despite the revenue miss, Regenxbio’s strong cash position of $245 million is noteworthy, as it supports the company’s ongoing gene therapy programs. Stifel analysts have maintained a Buy rating on Regenxbio, with a $40 price target, highlighting the company’s potential for gene therapy commercialization by 2025. They noted the anticipated completion of Regenxbio’s first Biologics License Application for RGX-121, a treatment for Mucopolysaccharidosis Type II, expected in the second half of 2025. In addition, Regenxbio’s collaboration with AbbVie (NYSE:ABBV) is advancing, with ongoing Phase 3 trials for treatments like ABBV-RGX-314 for wet age-related macular degeneration. Analysts at Stifel emphasize the value proposition of Regenxbio’s stock, citing its trading below its cash position and potential for significant returns from its gene therapy pipeline. These developments mark significant milestones for Regenxbio as it continues to progress in the biotechnology sector.
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