Stifel maintains Soleno Therapeutics stock Buy rating, $108 target

Published 27/05/2025, 15:42
Stifel maintains Soleno Therapeutics stock Buy rating, $108 target

On Tuesday, Stifel analysts maintained a Buy rating on Soleno Therapeutics Inc. (NASDAQ:SLNO) with a price target of $108.00, adding to the broader Wall Street consensus that remains strongly bullish with targets ranging from $97 to $145. The firm’s endorsement comes as the company’s management team, including CEO Anish Bhatnagar and CFO Jim Mackaness, discussed the promising start of their product Vykat during Stifel’s Biotech Bus Tour. According to InvestingPro data, SLNO has delivered impressive returns, with the stock up 71% year-to-date and trading near its 52-week high of $80.99.

According to the analysts, the initial launch dynamics for Vykat are very encouraging and set the stage for a robust and sustained market entry. Evidence of strong demand was seen in the 268 start forms received from 131 prescribers. Furthermore, early interactions with payors have been positive, with some coverage policies already in place and little to no resistance encountered. With a market capitalization of $3.9 billion and a moderate debt level, InvestingPro analysis indicates the company maintains strong financial flexibility to support its commercial launch, with liquid assets significantly exceeding short-term obligations.

Stifel’s analysts believe that Vykat, which is designed for patients with Prader-Willi Syndrome (PWS), has a distinct advantage over other rare disease treatments that had strong starts but later experienced a decline in momentum. They cite the large diagnosed population of approximately 10,000 patients who are on-label and Vykat’s clinical profile, which is expected to support broad and enduring use due to its favorable risk/benefit balance, safety, tolerance, and minimal monitoring requirements.

The company is also looking beyond the U.S. market, with Soleno Therapeutics expressing confidence in receiving approval for Vykat in the European Union. An application for marketing authorization (MAA) has recently been submitted and validated. Additionally, the company is optimistic about its competitive position and its patent portfolio, which could further solidify its standing in the market. While currently not profitable, InvestingPro analysis reveals analysts expect the company to turn profitable this year, with 12 additional exclusive insights available to subscribers through the comprehensive Pro Research Report.

In other recent news, Soleno Therapeutics has achieved a significant milestone with the European Medicines Agency validating its Marketing Authorization Application for Diazoxide Choline Prolonged-Release Tablets, intended for treating Prader-Willi syndrome. This development follows the U.S. FDA’s approval of the treatment, branded as VYKAT XR, earlier this year. Analysts from Cantor Fitzgerald maintain an Overweight rating on Soleno Therapeutics, expressing confidence in the potential of VYKAT XR, supported by positive clinical data. Piper Sandler also reiterated an Overweight rating, highlighting the significant market opportunity for VYKAT XR in the U.S., emphasizing its potential to become the standard of care for Prader-Willi syndrome.

Oppenheimer analysts have increased their sales estimate for VYKAT XR in 2025 to $50 million, citing promising commercial indicators and strong initial performance. The firm anticipates peak sales reaching $2 billion in the U.S., reinforcing their Outperform rating and $105 price target. Soleno Therapeutics is actively pursuing European approval for VYKAT XR, aligning with its strategy to achieve cash flow breakeven. The company’s comprehensive commercialization strategy, including market access and outreach efforts, underscores its commitment to addressing the unmet needs of Prader-Willi syndrome patients.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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