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Investing.com - Stifel has reiterated its Buy rating and $115.00 price target on Soleno Therapeutics Inc. (NASDAQ:SLNO) following the company’s preliminary second-quarter results and capital raise. According to InvestingPro data, analyst targets range from $97 to $145, with a strong consensus recommendation of 1.33 (Strong Buy).
The research firm noted that Soleno’s recent capital raise represents an "opportunistic decision" made from a position of strength, allowing the company to strengthen its balance sheet at a favorable price while taking advantage of improving market conditions. The company’s strong financial position is reflected in its impressive current ratio of 19.64, indicating substantial liquid assets exceeding short-term obligations.
Stifel dismissed concerns that the capital raise might signal imminent merger and acquisition activity, suggesting instead that the additional cash could provide Soleno with better negotiating leverage in any potential M&A discussions.
The firm highlighted that Vykat’s launch is "off to an excellent start" and is meeting or exceeding bullish expectations, with 2025 revenue projections of approximately $140 million and peak revenue estimates of about $2.5 billion potentially proving conservative.
Stifel views the recent weakness in Soleno’s stock as "an attractive buying opportunity," emphasizing that its fundamental investment thesis remains unchanged and the company maintains "credible M&A optionality."
In other recent news, Soleno Therapeutics has reported preliminary second-quarter revenue between $31 million and $33 million from its newly launched drug, Vykat XR. The drug, which received FDA approval in March 2025, has shown strong initial sales, significantly exceeding expectations. Soleno has also completed a $200 million public offering at $85 per share to fund the commercialization of Vykat XR and support regulatory activities in the European Union. Analysts at Baird have raised their price target for Soleno to $121 due to the promising sales figures, while Stifel has reiterated a Buy rating with a $115 price target, citing robust demand and favorable reimbursement dynamics.
The company has received approximately 646 patient start forms from 295 unique prescribers since the drug’s launch. Despite the capital raise, which some analysts suggest might reduce the likelihood of near-term mergers and acquisitions, the outlook for Vykat XR remains strong. Soleno’s cash reserves stood at approximately $293.8 million as of June 30, 2025, and it maintains $50 million in debt under a loan agreement with Oxford Financing LLC. These developments highlight Soleno Therapeutics’ strategic efforts to expand its market presence and ensure the successful rollout of its first FDA-approved product.
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