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On Thursday, Oppenheimer analysts maintained a positive stance on Soleno Therapeutics Inc. (NASDAQ:SLNO) shares, reiterating an Outperform rating and a $105.00 price target. The investment firm’s confidence in the company is bolstered by the strong initial commercial performance of Vykat XR, which is seen to surpass market expectations. The stock has demonstrated remarkable momentum, gaining over 66% year-to-date, with analyst targets ranging from $97 to $145. According to InvestingPro data, the company currently commands a market capitalization of $3.73 billion.
In a recent statement, the analysts at Oppenheimer highlighted the promising commercial indicators for Vykat XR, a product of Soleno Therapeutics. This optimism has led to an increased sales estimate for the year 2025, now set at $50 million, up from the previous forecast of $42 million. The firm also maintains its projection of peak sales in the United States reaching $2 billion. InvestingPro analysis reveals the company maintains strong financial flexibility with a current ratio of 15.68, indicating robust liquidity to support its growth initiatives.
The analysts noted Soleno Therapeutics’ commitment to submitting for European approval within the current quarter. This strategic move aligns with the company’s expectations to reach cash flow breakeven based on its existing resources. The firm anticipates that the stock will perform well as quarterly sales figures for Vykat XR are reported.
Oppenheimer’s analysis suggests that Soleno Therapeutics presents an attractive investment opportunity, especially for those seeking to avoid regulatory uncertainties prevalent in the current market. As a company focused on the successful launch of Vykat XR, Soleno is positioned as a pure-play launch story, which is expected to capture investor interest.
In other recent news, Soleno Therapeutics reported a disappointing financial performance for the first quarter of 2025, with earnings per share (EPS) of -$0.95, which was below the forecasted -$0.89. The company did not generate any revenue during this period, resulting in a net loss of $43.8 million and a cash position decrease to $290 million from $318.6 million in the previous quarter. Despite these financial challenges, Soleno achieved a significant milestone with the FDA approval of VICAT XR, a treatment for hyperphagia in Prader-Willi Syndrome, which began patient treatments in April. Looking ahead, Soleno plans to submit an application to the European Medicines Agency for VICAT XR in the first half of 2025 and anticipates modest revenue in the second quarter. The company is also exploring commercialization strategies in Europe, including potential partnerships. Additionally, Soleno faces risks such as continued cash burn without revenue generation and regulatory challenges in Europe that could delay product launch. The company remains optimistic about the market response to VICAT XR, with early patient treatments already underway.
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