JMP raises Taysha stock target to $6 on positive FDA alignment

Published 29/05/2025, 10:04
JMP raises Taysha stock target to $6 on positive FDA alignment

On Thursday, JMP Securities analyst Silvan Tuerkcan updated the investment firm’s outlook on Taysha Gene Therapies (NASDAQ:TSHA), increasing the price target from $5.00 to $6.00 while maintaining a Market Outperform rating. Currently trading at $2.44, the stock has shown strong momentum with a 41% gain year-to-date, according to InvestingPro data. The broader analyst consensus remains highly bullish, with price targets ranging from $5 to $9. This revision reflects the analyst’s positive view on recent clinical data and regulatory developments for the company.

Tuerkcan noted the objectivity of the endpoint in clinical trials as a positive factor, emphasizing its alignment with the Food and Drug Administration (FDA) standards. The current data shows a 100% response rate with patients achieving an average of 2.2 milestones, which is above the 1+ milestone requirement to be classified as a responder. This performance exceeds expectations and provides a substantial buffer for the next part of the study. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 5.35, while holding more cash than debt on its balance sheet.

The analyst also pointed out that natural history data indicates Rett syndrome patients typically do not see improvements in milestones without treatment. However, Taysha’s updates on both low and high doses of their therapy show promising results, with high-dose updates revealing improvements in an additional six patients.

The increase in the price target to $6.00 is partly due to a raised probability of success (PoS) for the company’s TSHA-102 treatment, which has been increased to 33% from the previous 25%. Tuerkcan’s report also alludes to potential corporate interest, highlighting the possibility of Astellas Pharma making a bid for TSHA-102, and potentially for Taysha Gene Therapies as a whole, in the third quarter of 2025.

Investors and industry observers will be closely monitoring Taysha’s progress and any potential acquisition moves by Astellas as these developments unfold. Based on InvestingPro’s Fair Value analysis, the stock appears to be currently overvalued despite its promising pipeline. Discover 11 additional exclusive ProTips and comprehensive financial analysis in the Pro Research Report, available to subscribers along with insights on 1,400+ other US stocks.

In other recent news, Taysha Gene Therapies reported an unexpectedly positive earnings result for the first quarter of 2025, surpassing analyst expectations with an earnings per share (EPS) of -$0.08, compared to the forecasted -$0.09. The company’s revenue also outperformed predictions, reaching $2.3 million against a forecast of $1.91 million. Additionally, Taysha announced the launch of a public offering of its common stock and pre-funded warrants, with Jefferies, BofA Securities, Piper Sandler, and Barclays (LON:BARC) managing the offering. The company is advancing towards a pivotal trial for its gene therapy candidate TSHA-102 after aligning with the U.S. Food and Drug Administration (FDA). This trial targets Rett syndrome, a severe neurological disorder, and will involve 15 patients with the primary endpoint being the gain or regain of developmental milestones. Baird maintained an Outperform rating on Taysha, reiterating a $7 price target, reflecting confidence in the company’s progress. The market eagerly anticipates the detailed study design for TSHA-102, which Taysha plans to announce at the International Rett Syndrome Foundation conference. These developments highlight Taysha’s continued advancements in its gene therapy programs, which remain a focal point for investors and analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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