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On Wednesday, H.C. Wainwright analyst reaffirmed a Buy rating and a $5.00 price target for Tenaya Therapeutics Inc (NASDAQ:TNYA), following the presentation of interim data from its RIDGE study. Currently trading at $0.46, the stock shows significant upside potential according to analyst targets ranging from $3 to $40. InvestingPro data indicates the stock is currently undervalued, though it has experienced high volatility with a 90% decline over the past year. The data, which pertains to a condition known as PKP2-associated arrhythmogenic right ventricular cardiomyopathy (ARVC), was shared at the annual Heart Rhythm Society’s Heart Rhythm meeting.
The RIDGE study is a non-interventional natural history and seroprevalence study of adults with PKP2-associated ARVC. It aims to collect and evaluate the clinical characteristics and medical history of participants, as well as to test for pre-existing neutralizing antibodies to AAV9. These insights are intended to support the ongoing clinical development of Tenaya’s TN-401 gene therapy, which is being designed as a potential treatment for PKP2-associated ARVC. The therapy plans to deliver a functional PKP2 gene to heart muscle cells using an AAV9 capsid. According to InvestingPro analysis, the company maintains a strong liquidity position with a current ratio of 4.22 and holds more cash than debt on its balance sheet, though it is quickly burning through its cash reserves.
So far, the RIDGE study has enrolled over 175 patients across approximately 20 clinical sites in the United States, United Kingdom (TADAWUL:4280), France, Germany, Italy, and Sweden. The goal is to reach up to 200 patients. As of February 2025, clinical data from 144 adults with PKP2-associated ARVC have been analyzed. The study has revealed several key findings, which are detailed further in the report by H.C. Wainwright.
The analyst’s reiterated Buy rating and price target reflect a positive outlook on Tenaya’s progress and potential in addressing ARVC through its TN-401 gene therapy. The company’s efforts in advancing the understanding of the disease through the RIDGE study and the development of a targeted treatment could prove significant for patients suffering from this genetic heart condition. With the next earnings report due in 12 days, InvestingPro subscribers can access 14 additional investment tips and comprehensive financial analysis to make informed investment decisions about TNYA’s potential.
In other recent news, Tenaya Therapeutics reported its fourth-quarter 2024 earnings, with an earnings per share (EPS) of ($0.28) and a full-year EPS of ($1.31), slightly outperforming analyst expectations. The company concluded the year with $61.4 million in cash reserves, further bolstered by an additional $48.89 million from a recent financing round. In clinical developments, Tenaya shared positive preclinical data for its TN-201 gene therapy, aimed at treating MYBPC3-associated hypertrophic cardiomyopathy (HCM), and is progressing in its MyPEAK-1 Phase 1b/2 clinical trial. Meanwhile, the RIDGE-1 Phase 1b trial for TN-401, targeting PKP2-associated arrhythmogenic right ventricular cardiomyopathy (ARVC), is ongoing, with initial data expected later this year.
Analysts have also adjusted their outlooks for Tenaya. Canaccord Genuity lowered its price target for the company from $18.00 to $6.00, maintaining a Buy rating, while H.C. Wainwright reduced its price target to $5.00, also maintaining a Buy rating. The adjustments follow Tenaya’s earnings report and recent financing activities. The company is also addressing a Nasdaq notification regarding a potential delisting due to its stock price not meeting the minimum bid requirement, with a 180-day period to regain compliance. Tenaya is actively exploring options to rectify this situation while continuing to advance its clinical programs.
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