Inozyme stock rating cut to Hold at Jefferies, target to $4 from $15

Published 16/05/2025, 19:42
Inozyme stock rating cut to Hold at Jefferies, target to $4 from $15

On Friday, Jefferies analyst Ryan Deschner downgraded Inozyme Pharma Inc . (NASDAQ:INZY) stock from Buy to Hold and significantly reduced the price target to $4.00 from the previous $15.00. This adjustment follows news of a pending acquisition of Inozyme by BioMarin Pharmaceutical (TADAWUL:2070) Inc. (NASDAQ:BMRN), with a proposed purchase price of $4 per share, which is a substantial increase from Inozyme’s prior close at $1.40. The total value of the transaction is estimated at $270 million.

The acquisition has received approval from both companies and is anticipated to be finalized in the third quarter of 2025. BioMarin’s interest in Inozyme centers around INZY-701, a phase III clinical candidate for pediatric ENPP1 deficiency, with expected top-line results in early 2026. INZY-701 is considered a strategic addition to BioMarin’s enzyme treatment portfolio, which currently generates a run rate of approximately $2 billion.

Deschner noted that the acquisition appears to be at a discount, likely due to the perceived risks associated with the adult opportunity for the treatment, the early-stage nature of additional pipeline projects, and existing financial overhangs. The enzyme treatment being acquired, INZY-701, is seen as a complementary bolt-on to BioMarin’s existing portfolio.

The deal reflects BioMarin’s strategy to expand its offerings in the enzyme therapy space and capitalize on Inozyme’s clinical advancements. Despite the downgrade, the new price target aligns with the agreed acquisition price, indicating an expected smooth progression of the transaction through to its expected completion later this year.

In other recent news, Bloomin’ Brands (NASDAQ:BLMN) reported its first-quarter earnings for 2025, surpassing analyst expectations. The company posted an adjusted earnings per share (EPS) of $0.59, which was above the projected $0.57, while revenue reached $1.05 billion, exceeding the forecast of $1.03 billion. Despite a challenging market environment, Bloomin’ Brands managed to demonstrate resilience, although it faced a 1.8% year-over-year decline in total revenues and a decrease in U.S. comparable restaurant sales by 0.5%. In contrast, Citi analysts recently adjusted their outlook on Bloomin’ Brands, lowering the price target from $9.25 to $8.25 and maintaining a Neutral rating, citing concerns over the company’s long-term recovery plan and consumer sentiment.

The company’s strategic efforts include menu simplification and operational redesign to improve efficiency and profitability. However, challenges such as declining U.S. traffic and macroeconomic pressures persist. Bloomin’ Brands is also focusing on reducing debt leverage and addressing potential tariff impacts on margins. CEO Mike Spannas expressed cautious optimism, acknowledging pricing challenges and emphasizing the early stages of a turnaround. For the full year, the company anticipates adjusted diluted EPS to range between $1.20 and $1.40, with a focus on enhancing customer experience and operational efficiency.

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