Rocket Pharmaceuticals stock price target raised to $3.00 from $2.50 at Jefferies

Investing.com - Jefferies raised its price target on Rocket Pharmaceuticals (NASDAQ:RCKT) to $3.00 from $2.50 on Friday, while maintaining a Hold rating on the gene therapy company’s stock. The new target comes as InvestingPro data shows RCKT trading at $3.09, down over 83% from a year ago, with analyst targets ranging from $2 to $19.

The firm identified several potential stock drivers for 2025-26, including the possibility of the FDA removing a clinical hold for RP-A501, the company’s AAV9-based therapy for Danon heart disease, which Jefferies views as a $500 million-plus opportunity. According to InvestingPro, RCKT maintains a strong liquidity position with a current ratio of 9.19 and more cash than debt on its balance sheet, though it’s burning through cash rapidly.

Jefferies also highlighted the planned resubmission of a Biologics License Application (BLA) by year-end 2025 for Kresladi, a lentiviral therapy targeting LAD-I white blood cell defect, which could potentially earn a Priority Review Voucher (PRV) in 2026 worth over $100 million if sold.

The advancement of other gene therapies in inherited cardiomyopathies, specifically PKP2 and BAG3 programs, was noted as the third key catalyst for the stock over the next two years.

Despite the higher price target reflecting these potential catalysts, Jefferies maintained its Hold rating on Rocket Pharmaceuticals shares. Investors should note that RCKT reports earnings in just 3 days, on August 11. Get deeper insights and access to over 10 additional ProTips with a subscription to InvestingPro.

In other recent news, Rocket Pharmaceuticals announced a strategic reorganization, reducing its workforce by approximately 30% to focus on its cardiovascular gene therapy programs. This restructuring will prioritize its adeno-associated virus cardiovascular platform, including clinical programs for Danon disease, PKP2-associated arrhythmogenic cardiomyopathy, and BAG3-associated dilated cardiomyopathy. The company also received significant attention after the U.S. Food and Drug Administration granted Regenerative Medicine Advanced Therapy designation to its gene therapy candidate RP-A601 for PKP2-arrhythmogenic cardiomyopathy. This designation, based on positive safety and efficacy data from a Phase 1 clinical trial, provides benefits such as intensive FDA guidance and expedited review. Rocket Pharmaceuticals also announced the appointment of Christopher Stevens as chief operating officer. Stevens brings extensive experience from his previous roles at Spark Therapeutics, GlaxoSmithKline (NYSE:GSK), and Bristol-Myers Squibb (NYSE:BMY). Additionally, the company received FDA clearance for its Investigational New Drug application for RP-A701, a gene therapy candidate targeting BAG3-associated dilated cardiomyopathy. These developments underscore Rocket Pharmaceuticals’ focus on advancing its cardiovascular therapies.

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