Truist maintains Buy rating and $18 target for Voyager stock

On Wednesday, Truist Securities reaffirmed their Buy rating on Voyager Therapeutics (NASDAQ:VYGR) with a consistent price target of $18.00. The decision comes after reviewing the company’s fourth-quarter performance. According to InvestingPro data, analyst targets for VYGR range from $9 to $30, with the stock currently trading below its Fair Value, suggesting potential upside opportunity. The company maintains a "GREAT" overall financial health score of 3.18 out of 5. Despite encountering a setback with VY9323, a treatment targeting SOD1 for ALS, analysts at Truist believe the issue is isolated to the SOD1-siRNA payload and does not impact the company’s broader capsid platform. The company’s strong financial position is evident in its current ratio of 5.56, with liquid assets well exceeding short-term obligations.

Voyager Therapeutics has been working on developing treatments for various neurological diseases using its capsid platform. The company’s Investigational New Drug (IND) applications for Friedreich’s ataxia (FA) and Parkinson’s disease (PD), in partnership with Neurocrine Biosciences (NASDAQ:NBIX), are expected to proceed as planned, with submissions slated for 2025.

In addition to the INDs, Voyager Therapeutics is anticipated to provide updates on VY7523, an anti-Tau monoclonal antibody, at the upcoming Alzheimer’s and Parkinson’s Diseases (ADPD) conference. These updates are particularly noteworthy as they may offer insights into the broader tau therapy landscape, with potential implications from data shared by industry peers such as UCB, Merck (NYSE:MRK), Johnson & Johnson (NYSE:JNJ), Biogen (NASDAQ:BIIB), and Novartis (NYSE:NVS).

The company has also indicated that its current cash reserves are sufficient to fund operations until mid-2027, as stated by management. This financial runway could be further extended with potential milestones from its partnerships with Neurocrine Biosciences and Novartis. InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, with a favorable Altman Z-Score of 9.85 indicating strong financial stability. Investors can access detailed financial metrics and 7 additional ProTips with an InvestingPro subscription.

Truist’s reiteration of the Buy rating underscores their confidence in Voyager Therapeutics’ prospects, despite the recent challenges with one of its drug candidates. The firm’s analysts are looking ahead to the forthcoming data and milestones that could reinforce the company’s position in the field of neurological disease treatment. Investors should note that the company’s next earnings report is scheduled for May 13, 2025, which could serve as a significant catalyst. For comprehensive analysis and detailed valuation metrics, access the full Pro Research Report available on InvestingPro.

In other recent news, Voyager Therapeutics reported its fourth-quarter earnings for 2024, revealing an earnings per share (EPS) of -0.37, which met analysts’ expectations. However, the company did not disclose its revenue forecast. Despite the earnings alignment, Citi analyst Samantha Semenkow reduced the price target for Voyager Therapeutics from $12.00 to $11.00 while maintaining a Buy rating for the stock. Voyager Therapeutics has a strong cash position of $332 million and potential future milestone payments totaling $8.2 billion, with a cash runway extending to mid-2027. The company shared positive single ascending dose data for its VY7523 anti-Tau antibody, which is part of its ongoing research into Alzheimer’s disease treatments. Voyager is also advancing its VY1706 tau silencing gene therapy to IND-enabling studies, with an IND filing expected in 2026. The company plans to present additional data at the upcoming ADPD™25 conference and is preparing to file IND applications for gene therapy programs targeting Parkinson’s and Friedreich’s Ataxia in partnership with Neurocrine by 2025. These developments underscore Voyager’s commitment to advancing its pipeline in neurotherapeutics.

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