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Investing.com - Raymond James initiated coverage on MeiraGTx Holdings plc (NASDAQ:MGTX) with a Strong Buy rating and a price target of $29.00 on Monday. The target represents significant upside potential from the current stock price of $8.24, which has already shown strong momentum with a 43% gain over the past six months.
The firm highlighted MeiraGTx’s fully integrated manufacturing platform, unique vector constructs, and full ownership of two major commercial opportunities addressing significant unmet needs as key factors in its bullish outlook. According to InvestingPro data, while the company operates with moderate debt levels, it faces challenges with cash burn and short-term liquidity.
Raymond James noted that while gene therapy as a class has faced challenges due to lackluster commercial performance, safety issues, and regulatory uncertainty, MeiraGTx deserves differentiation from other companies in the sector.
The $29 price target is based on modeling MeiraGTx’s two lead programs: AAV-AQP1 for xerostomia and AAV-GAD for Parkinson’s disease, which Raymond James believes represent significant commercial opportunities.
The firm also mentioned additional pipeline optionality from MeiraGTx’s riboswitch platform, though its valuation primarily focuses on the two lead programs.
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