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On Thursday, Piper Sandler increased the price target for Soleno Therapeutics Inc. (NASDAQ:SLNO) shares to $145 from the previous target of $93, while maintaining an Overweight rating on the stock. According to InvestingPro data, SLNO is currently trading at $72.27, with analysts’ targets ranging from $81 to $145, suggesting significant upside potential. The stock has demonstrated remarkable strength, delivering an 83.71% return over the past year. The adjustment follows the approval of VYKAT XR, Soleno’s new drug for Prader-Willi Syndrome (PWS), which has garnered significant attention from investors and positive feedback regarding the drug’s clear labeling and the management’s ability to successfully launch it.
The firm anticipates that during the first-quarter update on May 13, 2025, Soleno’s management will disclose preliminary data from the start of VYKAT XR’s launch. With a market capitalization of $3.31 billion and a beta of -2.29, SLNO has shown resilience by often moving counter to broader market trends. Although no specific targets have been set due to the relatively short time since the drug’s approval and market introduction, the upcoming update is eagerly awaited by investors.
Piper Sandler’s analyst highlighted the strong investor interest and the firm’s confidence in the successful launch of VYKAT XR. The analyst’s report addressed 29 frequently asked questions, reinforcing their conviction in the drug’s market introduction. InvestingPro analysis reveals that analysts expect positive earnings with an EPS forecast of $7.31 for FY2025, marking a potential turning point for the company. Discover 13 additional exclusive ProTips and comprehensive analysis in the Pro Research Report. Soleno Therapeutics is considered to be a standout company in the current challenging market, particularly as VYKAT XR is the first drug approved for PWS, targeting an untapped market with about 12,000 patients in the United States alone.
The lack of competition and the high visibility of the drug are seen as positive indicators for Soleno’s market position. Trading near its 52-week high of $74.50, SLNO has demonstrated strong momentum with a year-to-date return of 60.78%. The analyst’s note also mentioned the availability of a detailed Excel table, referred to as "Vol. 2 PWS Excel tablemania," for those interested in a deeper analysis of the market potential.
The updated model from Piper Sandler, reflecting the increased price target, takes into account these factors and the potential for Soleno Therapeutics to make a significant impact in the PWS treatment landscape.
In other recent news, Soleno Therapeutics has launched VYKAT XR, the first FDA-approved treatment for hyperphagia in individuals with Prader-Willi syndrome (PWS) aged four and older. The drug’s availability follows its FDA approval on March 26, 2025, marking a significant milestone for the company. Analysts have responded positively to this development, with Piper Sandler maintaining an Overweight rating and a $93 price target, while H.C. Wainwright increased their price target to $100, and Stifel raised theirs to $108. The analysts’ optimism is based on the drug’s market potential and the anticipated positive impact on Soleno’s revenue and growth prospects.
Additionally, Soleno Therapeutics announced a change in its independent registered public accounting firm, appointing CBIZ (NYSE:CBZ) CPAs as the new auditor for the fiscal year ending December 31, 2025. This transition follows the resignation of Marcum LLP, which had previously expressed an adverse opinion on the company’s internal control over financial reporting due to a material weakness. Despite this, there were no disagreements between Soleno and Marcum concerning accounting principles or financial statement disclosures.
The launch of VYKAT XR has garnered international attention, with strong interest from advocacy groups and healthcare professionals. Analysts from Stifel project a substantial revenue opportunity for Soleno, estimating approximately $2 billion, which they consider conservative. The drug’s approval is seen as a "blockbuster opportunity" for Soleno, given the large and well-diagnosed PWS patient population.
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