RCKT stock plunges to 52-week low, hitting $2.32

Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) stock has tumbled to $2.74, near its 52-week low, marking a dramatic decline from its peak of $26.98. This latest price level reflects a significant downturn for the biotechnology company, which specializes in gene therapies for rare and devastating pediatric diseases. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt, though it’s currently burning through cash reserves. Over the past year, the stock has experienced a precipitous decline, with InvestingPro data showing a 70.73% decrease in value. Investors are closely monitoring the company’s performance, as this sharp decline has raised concerns about its future prospects and the broader biotech sector’s challenges. Despite the current market sentiment, analysts maintain optimistic price targets ranging from $12 to $55, and InvestingPro analysis indicates the stock may be undervalued at current levels. For deeper insights, investors can access 8 additional ProTips and a comprehensive Pro Research Report covering RCKT among 1,400+ US stocks on InvestingPro.

In other recent news, Rocket Pharmaceuticals reported a modestly better-than-expected GAAP EPS, exceeding consensus estimates by $0.02, and confirmed a robust financial position with $318 million in cash projected to last until the fourth quarter of 2026. However, a significant development arose when a patient death in the company’s Danon disease trial led to a clinical hold by the FDA, affecting the timeline for key milestones. Analysts from BMO Capital Markets maintained an Outperform rating with a $30 price target, expressing that the therapeutic benefits of RP-A501 outweigh the risks despite the adverse event. Jefferies also retained its Buy rating with a $29 price target, though they noted concerns about the impact on future gains due to the clinical hold. Meanwhile, JPMorgan maintained an Overweight rating with a $44 price target, viewing the FDA hold as a potentially major setback for the program. Similarly, Morgan Stanley (NYSE:MS) kept its Overweight rating with a $42 price target, acknowledging the pressure on the company’s shares following the trial halt. Rocket Pharmaceuticals is currently working with the FDA and an Independent (LON:IOG) Data Safety Monitoring Committee to investigate the cause of the serious adverse event. The company has not yet provided a revised timeline for the continuation of the trial or the release of updated data.

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