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On Friday, Stifel analysts increased their price target on Soleno Therapeutics Inc. (NASDAQ:SLNO) shares from $74.00 to $108.00, maintaining a Buy rating. Currently trading at $67.39, the stock has surged 37% in the past week following the U.S. Food and Drug Administration’s (FDA) approval of Vykat (DCCR) for the treatment of Prader-Willi Syndrome, a genetic disorder that causes obesity, intellectual disability, and shortness in height. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $70 to $123.
The analyst at Stifel expressed optimism about the drug’s market potential, stating that the FDA’s approval presents a "blockbuster opportunity" for Soleno Therapeutics. Despite the stock’s positive reaction to the news, the analyst believes the market has yet to fully recognize the drug’s value. With a current market capitalization of $3.05 billion and a strong financial health score according to InvestingPro, the company appears well-positioned to capitalize on this opportunity. The expectation is that the stock will continue to gain value over time, especially considering the current challenging environment for biotech stocks that tends to favor companies with commercial products.
Stifel anticipates that future discussions will focus on the drug’s persistency and the long-term trajectory of its launch. The firm remains confident in Vykat’s strong position in the market due to its favorable risk/benefit profile and the well-diagnosed, large Prader-Willi Syndrome (PWS) patient population.
The revised model by Stifel now estimates a higher revenue opportunity for Soleno Therapeutics, projecting approximately $2 billion in revenue compared to the previous estimate of around $1.6 billion. This new projection is still considered by the analysts to be potentially conservative, suggesting there might be even more room for growth. For a comprehensive analysis of Soleno Therapeutics’ valuation and growth potential, including 14 additional ProTips and detailed financial metrics, visit InvestingPro to access the full research report.
In other recent news, Soleno Therapeutics has achieved significant developments following the FDA approval of its drug VYKAT XR for treating hyperphagia in Prader-Willi Syndrome (PWS). Analysts from various firms have responded positively, with Oppenheimer raising its price target to $105, noting the drug’s potential to reach peak sales of $2 billion. Cantor Fitzgerald also increased its price target significantly to $123, citing the drug’s clean label and supportive pricing strategy as key factors for anticipated market success. Guggenheim adjusted its price target to $81, maintaining a Buy rating, and highlighted the drug’s projected revenue of $1.6 billion by 2030. Piper Sandler maintained a $93 target, emphasizing the minimal warnings on the drug’s label, which they believe will aid in market adoption. Stifel kept a Buy rating with a $74 target, expressing confidence in the drug’s market entry due to high awareness and unmet needs in PWS treatment. These developments mark a milestone for Soleno Therapeutics, positioning the company for potential growth in the rare disease market.
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