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On Monday, Piper Sandler initiated coverage on LENZ Therapeutics Inc (NASDAQ:LENZ), assigning an Overweight rating to the company’s stock with a price target of $51.00. Currently trading at $20.26, the stock sits well below the analyst consensus range of $36-60, according to InvestingPro data. The bullish stance comes as the firm anticipates the potential success of LNZ100, LENZ Therapeutics’ acelidine-based topical eyedrop designed to treat presbyopia, a condition impacting approximately 128 million individuals in the United States. While the company maintains a strong financial position with more cash than debt and a healthy current ratio of 20.36, InvestingPro analysis indicates the company is not yet profitable, with an EBITDA of -$58.55 million in the last twelve months.
The New Drug Application (NDA) for LNZ100 was accepted in October, with a Prescription Drug User Fee Act (PDUFA) date set for August 8, 2025. The analysts at Piper Sandler project that LNZ100 is poised to enter the market in the fourth quarter of 2025. They also believe that LNZ100 could emerge as a leading treatment in its category, outperforming competitors such as ABBV’s Vuity and Tenpoint’s Bramichol.
Financial projections by Piper Sandler suggest that LNZ100 could generate $58 million in U.S. sales in 2026, with the potential to increase to $592 million by 2035. The firm’s valuation of LENZ Therapeutics’ stock reflects these optimistic sales forecasts.
Further details on the company’s strategy for bringing LNZ100 to market are expected to be shared during LENZ Therapeutics’ Commercial Day, which is scheduled for April 15. Investors and analysts alike are looking forward to gaining more insights into the company’s launch plans for this promising presbyopia treatment. For deeper insights into LENZ’s financial health, valuation metrics, and growth potential, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
In other recent news, LENZ Therapeutics Inc. reported its Q4 2024 financial results, emphasizing its strong cash position with $209.1 million in reserves, which supports its path towards product commercialization. The company is preparing for the potential launch of its aceclidine-based eye drop, LNZ100, designed to treat presbyopia, with a Prescription Drug User Fee Act (PDUFA) date set for August 8, 2025. Citi analyst Yigal Nochomovitz raised the price target for LENZ Therapeutics to $47, up from $44, maintaining a Buy rating due to confidence in the company’s product prospects and strategic marketing plans. Meanwhile, H.C. Wainwright reiterated a Buy rating with a $38 price target, citing optimism for FDA approval. LENZ Therapeutics is progressing with its marketing strategy, planning to engage 15,000 eye care professionals and execute comprehensive campaigns as part of its commercial launch efforts. The company also highlighted a significant reduction in operating expenses from $25 million in Q4 2023 to $15.2 million in Q4 2024, demonstrating financial discipline. LENZ continues to focus on innovation and market expansion, aiming to capture a significant share of the $3 billion presbyopia market.
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