Truist sets $16 target on Solid Biosciences stock with Buy rating

On Wednesday, Truist Securities began coverage on Solid Biosciences (NASDAQ:SLDB), a clinical-stage biotechnology company with a market capitalization of $156.62 million, assigning a Buy rating and setting a price target of $16.00 per share. The stock currently trades at $3.92, significantly below its 52-week high of $15.05.

The company, which focuses on gene therapies for neuromuscular diseases, is the result of a merger between SolidBio and AavantiBio. The combined entity brings together expertise in transgene design and AAV manufacturing, essential components in gene therapy delivery.

Truist Securities noted the potential upside for Solid Biosciences with the first-in-human (FIH) look from the ongoing Phase 1/2 study of SGT-003 in Duchenne muscular dystrophy (DMD) expected in the first quarter of 2025. According to InvestingPro data, analyst price targets range from $12 to $28, suggesting significant potential upside from current levels.

Positive results from this study could significantly de-risk the company's program and overall platform. Moreover, Solid Biosciences plans to submit additional Investigational New Drug (IND) applications for cardiac indications in the first half of 2025.

The analyst at Truist Securities highlighted the company's attractive setup, particularly noting its negative enterprise value (EV). InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, with a strong current ratio of 7.85, indicating robust short-term liquidity.

Based on InvestingPro's Fair Value analysis, the stock appears undervalued at current levels. The initiation of coverage with a Buy rating and a $16 price target reflects the analyst's confidence in the company's future prospects and its gene therapy development programs.

Solid Biosciences' work in the field of gene therapy is aimed at addressing some of the most challenging diseases affecting the neuromuscular system. The collaboration between the expertise of SolidBio and AavantiBio is expected to enhance the company's capabilities in advancing its therapeutic programs.

Investors and market watchers will be closely monitoring the progress of Solid Biosciences' clinical trials, especially the anticipated results from the SGT-003 study in DMD, as these milestones could be critical for the company's growth and valuation in the biotech industry. For deeper insights into Solid Biosciences' financial health and growth prospects, including 10+ additional ProTips and comprehensive analysis, check out the full research report available on InvestingPro.

In other recent news, Solid Biosciences has received approval from the U.S. Food and Drug Administration for its Investigational New Drug application for SGT-212, a gene therapy candidate for Friedreich’s ataxia. This promising therapy uses an Adeno-Associated Virus to deliver full-length frataxin directly to the heart and cerebellum, potentially halting disease progression. Solid Biosciences plans to initiate a Phase 1b clinical trial in the second half of 2025 to assess the safety and tolerability of SGT-212.

The company has also entered into an exclusive collaboration with Mayo Clinic to develop gene therapies targeting genetic cardiac conditions. This partnership grants Solid Biosciences exclusive worldwide licenses to Mayo Clinic's Suppression-Replacement gene therapy platform and several cardiac gene therapy programs.

JMP Securities initiated coverage on Solid Biosciences with a Market Outperform rating, recognizing the company's potential in gene therapy and its valuable capsid engineering capabilities.

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