Truist maintains buy on Solid Biosciences stock, price target at $16

Published 16/05/2025, 16:40
Truist maintains buy on Solid Biosciences stock, price target at $16

On Friday, Truist Securities reiterated a Buy rating with a $16.00 price target on Solid Biosciences (NASDAQ:SLDB) stock, representing significant upside from the current price of $2.77. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculation, despite falling over 72% in the past year. The firm’s positive stance comes as the biotechnology company’s gene therapy programs for Duchenne muscular dystrophy (DMD), Friedreich’s ataxia (FA), and catecholaminergic polymorphic ventricular tachycardia (CPVT) are progressing as planned, with significant updates expected in the second half of 2025.

Solid Biosciences’ SGT-003, aimed at treating DMD, has already delivered promising biomarker data in February and is on track for further regulatory and data updates in the fourth quarter of 2025. The company plans to meet with the FDA once sufficient data is collected within the year, with a full update anticipated in the fourth quarter. The initial data from the first three patients treated with SGT-003 suggest a potential best-in-class profile for the gene therapy, which is significant given recent setbacks faced by competitors in the space.

Additionally, Solid Biosciences’ SGT-212 for FA, which employs a novel dual delivery approach, received IND clearance in the first quarter of 2025. The first-in-human dosing is expected to occur in the second half of the year. SGT-501 for CPVT is on course to submit an IND in the first half of 2025 following successful preclinical studies.

The company’s financial position shows mixed signals. While holding over $300 million in cash and maintaining a strong current ratio of 10.89, InvestingPro data indicates the company is quickly burning through its cash reserves, with negative free cash flow of $107.3 million in the last twelve months. However, the company holds more cash than debt on its balance sheet, which should support its key milestones. Get deeper insights into Solid Biosciences’ financial health with InvestingPro’s comprehensive research report, part of their coverage of over 1,400 US stocks. Truist Securities also announced an investor dinner with Solid Biosciences management, scheduled to take place in Las Vegas on June 20, 2025, at the Parent Project Muscular Dystrophy (PPMD) conference.

Solid Biosciences’ gene therapy portfolio continues to generate interest as it navigates a complex and high-barrier gene therapy market. With analyst price targets ranging from $10 to $20, and a consensus recommendation of 1.42 (Strong Buy), market expectations remain high despite current challenges. The company’s strategic approach to regulatory engagement and its potential for conditional approval for its therapies are closely monitored by industry stakeholders.

In other recent news, Solid Biosciences has been the focus of several analyst updates and corporate developments. H.C. Wainwright raised its price target for the company to $20, citing promising initial clinical data from its Phase 1/2 INSPIRE DUCHENNE study, which showed strong results in micro-dystrophin expression. Piper Sandler, however, lowered its price target to $17 while maintaining an Overweight rating, reflecting ongoing progress in the company’s therapeutic pipeline. Similarly, Jefferies adjusted its price target to $15, maintaining a Buy rating and acknowledging Solid Biosciences’ adherence to program timelines and upcoming regulatory discussions for its Duchenne Muscular Dystrophy treatment.

JMP Securities reaffirmed a $15 price target and a Market Outperform rating, highlighting the potential of Solid Biosciences’ SGT-003 gene therapy. The company is also preparing for a Phase 1b study for Friedreich’s Ataxia and plans to file an Investigational New Drug application for CPVT. The company’s financial standing remains strong, with a reported cash reserve of $307 million expected to fund operations into 2027. Additionally, the broader biotech sector, including Solid Biosciences, experienced a market impact following the resignation of FDA’s top vaccine official, Peter Marks, raising concerns about potential changes in regulatory processes. These recent developments underscore the ongoing focus and anticipation surrounding Solid Biosciences’ clinical advancements and regulatory engagements.

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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