Bullish indicating open at $55-$60, IPO prices at $37
On Thursday, Raymond (NSE:RYMD) James initiated coverage on Regenxbio Inc . (NASDAQ:RGNX), bestowing an Outperform rating and setting a price target of $27.00 for the biotechnology company’s shares. The firm’s endorsement comes with a positive outlook based on several key factors that could influence the company’s future performance. According to InvestingPro data, analyst targets for RGNX range from $22 to $52, with the stock currently trading at $8.43, suggesting significant upside potential. The stock has experienced a challenging period, down 35% over the past year.
The analyst’s optimism is rooted in the potential launch of Elevidys and the anticipated regulatory trajectory for RGX-202, which could follow an accelerated approval pathway based on biomarker results. The recent failure of a competing program from Pfizer (NYSE:PFE) has also potentially increased the available market share for Regenxbio’s offerings. InvestingPro analysis indicates the company maintains a strong liquidity position with a current ratio of 3.05, though investors should note it’s currently burning through cash rapidly.
Regenxbio’s position in the market for gene therapies targeting neovascular retinal diseases is another cornerstone of Raymond James’ positive outlook. The company is considered to be ahead of its competitors, and its therapies are believed to have a reduced risk of intraocular inflammation. The firm anticipates that pivotal results for these therapies could be released in the first half of 2026.
Furthermore, the financial health of Regenxbio is expected to be bolstered by consistent royalties from the drug Zolgensma and milestones from the recently partnered MPS II (Hunter Syndrome) program, RGX-121. The analyst projects that RGX-121 could receive regulatory approval by mid-2025, contributing to the company’s growth. InvestingPro subscribers can access detailed financial health metrics, including the company’s Fair Value assessment and six additional ProTips that provide crucial insights into RGNX’s financial position and growth prospects.
The endorsement from Raymond James reflects a confidence in Regenxbio’s strategic positioning within the biotechnology sector, especially in the field of gene therapy. The company’s pipeline and potential for regulatory success have positioned it favorably in the eyes of the firm, as reflected in the Outperform rating and the $27 price target.
In other recent news, biotechnology company Regenxbio has formed a significant partnership with Nippon Shinyaku for the development and commercialization of two gene therapy candidates, RGX-121 and RGX-111. H.C. Wainwright maintained its Buy rating for Regenxbio post this announcement. Regenxbio is expected to receive an upfront payment of $100 million with potential for an additional $700 million tied to developmental, regulatory, and sales milestones. The company is also eligible to receive double-digit royalties on net sales in the U.S. and Asia.
In addition, H.C. Wainwright has increased the probability of approval for RGX-202, a therapy for Duchenne muscular dystrophy (DMD), from 35% to 45%. Raymond James also maintained its Outperform rating for Regenxbio, following encouraging data from the Phase 1/2 trial of RGX-202. Morgan Stanley (NYSE:MS) resumed its coverage of Regenxbio, assigning an Overweight rating to the stock while highlighting the potential of gene therapy in treating VEGF-mediated diseases. These are the recent developments for Regenxbio, with a focus on their advancements in gene therapy.
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