Neurogene stock target raised to $22 by BMO Capital

On Monday, BMO Capital Markets updated its outlook on Neurogene (NASDAQ:NGNE), increasing the price target to $22 from the previous $16 while maintaining an Outperform rating. The stock, currently trading at $18.66 with a market capitalization of $266 million, has shown strong momentum recently. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics. The adjustment comes after presentations at the American Society of Gene & Cell Therapy (ASGCT) and recent remarks during Taysha’s earnings call that bolstered confidence in the regulatory acceptance of non-placebo controlled trials.

Evan Seigerman, the analyst from BMO Capital, shared insights into the factors influencing the revised price target. The recent appointment of CBER director Vinay Prasad initially caused concerns about the potential for reduced flexibility regarding non-placebo controlled trials, which negatively impacted NGNE shares. However, subsequent commentary from Taysha’s earnings call suggested that the FDA is still generally receptive to single-arm trials, particularly for rare diseases.

Further evidence supporting the positive outlook came from ASGCT presentations, which detailed risk mitigation strategies for Hemophagocytic Lymphohistiocytosis (HLH), a rare immune disorder. These strategies have contributed to the analyst’s increased confidence in the company’s prospects.

Seigerman’s report also noted an anticipated decrease in long-term research and development costs for Neurogene. This expectation of reduced expenses was a key factor in the decision to raise the price target for NGNE stock.

Neurogene, a biotech company focused on developing genetic medicines for severe neurological diseases, has shown potential in its approach to treatment development, which includes non-placebo controlled trials that can be particularly valuable in studying rare diseases where traditional trial designs may not be feasible. The company’s progress and the evolving regulatory landscape have been closely monitored by investors and industry analysts alike. Analyst targets for the stock range from $16 to $72, reflecting diverse views on the company’s potential. For deeper insights into Neurogene’s financial health and growth prospects, access the detailed Pro Research Report available on InvestingPro.

In other recent news, Neurogene Inc. has made significant strides in its gene therapy efforts, particularly with the publication of a study on its EXACT™ transgene regulation technology. This technology aims to control gene therapy expression to therapeutic levels without causing toxicity, which is crucial for treating Rett syndrome. The study’s findings have facilitated the launch of a Phase 1/2 clinical trial for NGN-401, a gene therapy candidate for Rett syndrome. Neurogene has also reported on its monitoring and treatment strategy for hemophagocytic lymphohistiocytosis (HLH) at a prominent gene therapy meeting, emphasizing early detection and treatment protocols.

Additionally, Neurogene has amended its agreement with Baker Bros. Advisors LP, adjusting the ownership threshold for board nominations, and issued prefunded warrants to certain stockholders. In terms of analyst ratings, Baird recently downgraded Neurogene from Outperform to Neutral, citing increased regulatory uncertainty following changes in FDA leadership. The firm also lowered its price target for the company from $38 to $24. BMO Capital Markets also revised its outlook, reducing the price target from $45 to $16 while maintaining an Outperform rating, following the unfortunate death of a patient and leadership changes within the company. These developments reflect ongoing challenges and regulatory considerations that Neurogene is navigating in its pursuit of advancing its gene therapy treatments.

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