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Biohaven shares rise as TD Cowen lifts price target to $75

EditorLina Guerrero
Published 11/13/2024, 03:27 PM
BHVN
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On Wednesday, TD Cowen demonstrated confidence in Biohaven Pharmaceutical (TADAWUL:2070) Holding (NYSE:BHVN) by increasing the stock's price target to $75.00, up from the previous $55.00, while retaining a Buy rating on the shares. The firm's analyst highlighted several upcoming milestones for Biohaven, which include the anticipated Phase III data for T-alfa in Spinal Muscular Atrophy (SMA). The analyst expressed a belief in the favorable risk/reward profile of the forthcoming data.

The analyst also noted that by the end of the year, Biohaven is expected to provide an update on the SAD/MAD/subQ IgG degrader data for BHV-1300. Additionally, Investigational New Drug (IND) submissions for three more MoDE degrader platform candidates are anticipated. The company is also on track to submit a New Drug Application (NDA) for tror in Spinocerebellar Ataxia (SCA) by year-end, with the acceptance of this submission being a critical factor for the company's momentum.

The positive outlook is not just limited to the near term. The TD Cowen analyst predicts that the momentum Biohaven is currently experiencing is set to continue into 2025. This projection is based on the company's pipeline developments and the expected regulatory milestones.

The upgrade in Biohaven's price target reflects the firm's assessment of the company's potential based on its development pipeline and upcoming regulatory events. The analyst's comment suggests a strong belief in the company's prospects and the impact of its drug development programs on its valuation.

In other recent news, Biohaven Pharmaceutical Holding has been the subject of several analyst adjustments. RBC Capital lowered Biohaven's stock price target from $68.00 to $66.00, maintaining an Outperform rating, following the company's third-quarter earnings report for 2024. The firm expressed optimism about Biohaven's pipeline, particularly in the Spinal Muscular Atrophy (SMA) sector and its IgG degrader program.

Analysts from BofA Securities and Leerink Partners also retained Buy and Outperform ratings respectively, citing promising developments in Biohaven's SMA and spinocerebellar ataxia (SCA) treatments. BTIG sustained a Buy rating and a price target of $59.00, highlighting the potential of Biohaven's myostatin inhibitor, T-Alfa, in the treatment of SMA.

Baird reiterated an Outperform rating and a price target of $60.00, encouraged by clinical results from competitor Scholar Rock, which could be favorable for Biohaven's SMA treatment. Biohaven's troriluzole treatment for SCA, if approved, could achieve peak U.S. sales of over $1.5 billion, according to analysts.

InvestingPro Insights

Recent InvestingPro data and tips provide additional context to TD Cowen's bullish stance on Biohaven Pharmaceutical Holding (NYSE:BHVN). The company's market capitalization stands at $5.07 billion, reflecting significant investor interest.

InvestingPro Tips highlight that BHVN has seen a strong return over the last year, with a 75.04% price total return. This aligns with the analyst's positive outlook on the company's momentum. Additionally, 2 analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in Biohaven's near-term prospects.

However, it's important to note that BHVN is not currently profitable, with an adjusted operating income of -$781.27 million in the last twelve months. This underscores the importance of the upcoming milestones mentioned in the article, particularly the Phase III data for T-alfa and the NDA submission for tror, which could potentially improve the company's financial position.

The stock's price movements are quite volatile, as indicated by another InvestingPro Tip. This volatility is reflected in the recent price performance, with a 28.11% return over the last three months but a -6.29% return in the past week.

For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for BHVN, providing a deeper understanding of the company's financial health and market position.

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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