Soleno stock price target raised to $102 by Baird

On Thursday, Baird analyst Brian Skorney increased the price target for Soleno Therapeutics Inc. (NASDAQ:SLNO) to $102.00 from the previous $72.00 while maintaining an Outperform rating on the stock. Currently trading at $48.97 with a market capitalization of $2.25 billion, Soleno has shown strong momentum according to InvestingPro data. The adjustment follows the regulatory approval of Soleno’s drug Vykat (DCCR), which Skorney identifies as a critical catalyst for the company.

The approval of Vykat (DCCR) is seen as a significant step in reducing regulatory risk, leading to an expected substantial revaluation of the company’s worth. InvestingPro analysis reveals that Soleno’s stock typically moves opposite to the market with a beta of -1.69, potentially offering portfolio diversification benefits. Skorney highlights that the drug comes with a clean label and has had favorable interactions with payers thus far, which bolsters its potential for success in the market. The analyst believes that Soleno has a promising future, either as an independent entity or integrated within a larger organization.

Skorney’s optimism extends to the drug’s commercial prospects, noting that the impressive progress and trajectory expected in the second half of 2025 could lead to further gains, in addition to the positive after-hours trading movement already observed. The new price target of $102 reflects this confidence in Soleno’s approval and subsequent market performance.

Soleno’s Vykat (DCCR) is now poised for a strong commercial launch, with Skorney anticipating that the company’s strategic approach will continue to drive the stock’s value upward. The revised price target suggests that Baird sees significant growth potential for Soleno in the wake of this regulatory milestone.

In other recent news, Soleno Therapeutics has announced the FDA approval of VYKAT XR, a treatment for hyperphagia in individuals with Prader-Willi syndrome. This marks a significant milestone as it is the first therapy specifically approved for this condition, with availability expected in the U.S. by April 2025. Analysts at Stifel have maintained a Buy rating on Soleno Therapeutics, with a price target of $74, reflecting optimism about the drug’s commercial prospects. Cantor Fitzgerald has also maintained its Overweight rating and a $67 price target, adjusting its financial model in anticipation of the new drug launch.

Additionally, Soleno Therapeutics has made changes to its executive compensation program, with increases in base salaries and bonuses for key executives, including CEO Anish Bhatnagar and CFO James Mackaness. The adjustments are part of the company’s strategy to align executive pay with performance and market standards. These developments come amid preparations for the potential introduction of VYKAT XR to the market. Investors and stakeholders are closely monitoring these updates as they could have a significant impact on Soleno Therapeutics’ future trajectory.

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