Lucid Capital Markets initiates Opus Genetics stock with buy rating

Lucid (NASDAQ:LCID) Capital Markets initiated coverage of Opus Genetics (NASDAQ:IRD) on Tuesday with a buy rating and a $5.00 price target, citing promising developments in the company’s gene therapy pipeline for inherited retinal diseases. The target represents significant upside potential from the current price of $0.94, with analysts’ targets ranging from $6 to $8. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics.

The firm highlighted Opus’s lead program, OPGx-LCA5, which is currently in Phase 1/2 trials for LCA5-associated Leber Congenital Amaurosis, a severe early-onset inherited retinal disease affecting approximately 200 patients in the U.S. Interim adult data has shown encouraging safety and efficacy results, with initial data from pediatric patients expected in the third quarter of 2025. With a market capitalization of $56.2 million, InvestingPro data shows the company holds more cash than debt on its balance sheet, providing runway for its development programs.

Opus’s second program, OPGx-BEST1, targets a larger population of approximately 9,000 U.S. patients and is supported by strong preclinical data from a relevant animal model. This program is expected to enter clinical trials in 2025, with early Phase 1/2 data anticipated in the first quarter of 2026.

The company is also advancing additional AAV-based gene therapies targeting inherited retinal diseases caused by mutations in RHO, RDH12, NMNAT1, MERTK, and CNGB1, according to Lucid Capital Markets.

Lucid noted that Opus may benefit from potential milestone and royalty payments tied to global sales of Phentolamine Ophthalmic Solution 0.75%, which could provide additional financial support as the company develops its pipeline of treatments.

In other recent news, Opus Genetics announced positive results from its Phase 3 LYNX-2 clinical trial for Phentolamine Ophthalmic Solution 0.75%, aimed at improving night vision in patients with reduced mesopic vision following eye surgery. The trial met its primary endpoint, with 17.3% of patients achieving a significant improvement in visual acuity compared to 9.2% in the placebo group. Additionally, the U.S. FDA granted Opus Genetics Regenerative Medicine Advanced Therapy (RMAT) designation for their investigational gene therapy, OPGx-LCA5, designed to treat Leber Congenital Amaurosis due to genetic variations in the LCA5 gene. The RMAT designation is based on promising preliminary clinical data from an ongoing Phase 1/2 trial.

Shareholders of Opus Genetics approved several key proposals during the company’s annual stockholder meeting, including the election of nine directors and the conversion of Series A Preferred Stock into Common Stock. Craig-Hallum initiated coverage on Opus Genetics with a Buy rating and a $6.00 price target, citing the potential of the company’s pipeline of AAV gene therapies. The firm highlighted the de-risked nature of Opus Genetics’ platform and the promising data from its lead candidate, OPGx-LCA5. Furthermore, Opus Genetics reported early success in a Phase 1/2 clinical trial of OPGx-LCA5 in pediatric patients, with the first child showing meaningful improvement in visual function one month after treatment. The company has engaged with the FDA to discuss the design of a potential registrational study for this therapy.

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