SoFi CEO enters prepaid forward contract on 1.5 million shares
Investing.com - Oppenheimer initiated coverage on Lexeo Therapeutics (NASDAQ:LXEO) with an Outperform rating and a price target of $20.00 on Thursday. The stock, currently trading at $4.65, has shown strong momentum with a 26.7% gain over the past week. According to InvestingPro data, analyst targets range from $10 to $28, suggesting significant upside potential.
The research firm expressed optimism about Lexeo’s development of gene therapies for rare cardiac and neurodegenerative diseases, highlighting the company’s lead candidate LX2006, which is advancing to a registration trial for Friedreich’s ataxia cardiomyopathy.
Oppenheimer estimates that LX2006 could achieve over $1 billion in peak sales in the U.S. market, citing previous clinical data that indicates a clear path to success for the therapy.
The firm also noted Lexeo’s second candidate, LX2020, which targets PKP2 arrhythmic cardiomyopathy and represents a potentially larger market opportunity, with important data expected this fall that could clarify its path to market.
Oppenheimer stated that Lexeo’s technology offers advantages in efficacy, safety, and scalability compared to other gene therapy approaches. With a cash runway extending into 2028 and a market capitalization of $251 million, the firm recommends investors build a position in the stock. InvestingPro analysis shows the company maintains a healthy current ratio of 3.42, with liquid assets exceeding short-term obligations, though it’s currently burning through cash with negative free cash flow of $88.3 million.
In other recent news, Lexeo Therapeutics announced that the U.S. Food and Drug Administration granted Breakthrough Therapy designation to its LX2006 treatment for Friedreich ataxia. This designation was based on interim clinical data showing improvements in cardiac biomarkers and functional measures. Additionally, the FDA selected LX2006 for its Chemistry, Manufacturing, and Controls Development and Readiness Pilot program to expedite development timelines. Stifel has reiterated its Buy rating on Lexeo Therapeutics with a $21 price target following this announcement. Meanwhile, Leerink Partners adjusted its price target for Lexeo to $10, down from $16, while maintaining an Outperform rating, as the company entered into a private placement agreement expected to raise approximately $80 million. This agreement involves the sale of common shares and warrants, potentially extending Lexeo’s cash runway into 2028. Lexeo also held its 2025 Annual Meeting of Stockholders, where two Class II directors were elected, and the selection of its independent registered public accounting firm was ratified.
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