On Tuesday, Piper Sandler maintained a positive stance on Taysha Gene Therapies (NASDAQ:TSHA), reiterating an Overweight rating with a $7.00 price target. This affirmation comes after a close evaluation of recent efficacy data released by a competitor in the gene therapy space for Rett syndrome.
Taysha Gene Therapies, which specializes in gene therapy treatments, has been under scrutiny as competitors also advance in the race to develop therapies for Rett syndrome. The competitor's recent data release on their treatment, NGN-401, showed minimal differentiation in efficacy when compared to Taysha's TSHA-102. However, a significant adverse event related to the high dose of NGN-401 was reported, a concern not associated with TSHA-102.
The market reaction to the competitor's announcement of their presentation date had previously led to a roughly 23% drop in Taysha's share price. This decline was fueled by concerns that the competitor's data might show a superior profile. However, with the actual data suggesting otherwise, and the adverse event reported in the high dose of the competitor's therapy, Piper Sandler anticipates a potential recovery for Taysha's shares.
Looking ahead, Taysha's high dose data for TSHA-102 is highly anticipated, with expectations set for the first half of 2025. This upcoming data point is seen as a potential catalyst for the company's stock performance.
The analyst from Piper Sandler concluded by encouraging investors to consider buying Taysha's shares at the market open, expecting the company to bounce back from the recent downturn influenced by the competitor's data announcement. The $7 price target was maintained, reflecting confidence in the stock's potential upside.
In other recent news, Taysha Gene Therapies has been making significant strides in its TSHA-102 gene therapy program for Rett Syndrome. The company has reported positive safety and efficacy data from its Phase 1/2 trials' low-dose cohort, and has initiated the high-dose cohort while expanding the pediatric trial into Canada. Taysha has also reported a net loss of $20.9 million for the quarter, but maintains a stable financial position with $172.7 million in cash, extended by a public follow-on offering into the fourth quarter of 2026.
Baird has maintained an Outperform rating on Taysha's shares with a $7.00 price target, while BMO Capital Markets and Canaccord Genuity have maintained their Outperform and Buy ratings respectively, despite adjusting their price targets. The analysts' reiteration of the stock price targets for Taysha comes at a time when the market is closely watching for any new data that could impact the gene therapy sector.
InvestingPro Insights
Recent InvestingPro data provides additional context to Taysha Gene Therapies' (NASDAQ:TSHA) current market position. Despite the recent market volatility, TSHA has shown a significant return of 28.35% over the last week, aligning with Piper Sandler's positive outlook. This short-term gain is particularly noteworthy given the stock's 18.91% decline over the past month, suggesting a potential turnaround in investor sentiment.
InvestingPro Tips highlight that TSHA holds more cash than debt on its balance sheet, which could provide financial flexibility as the company advances its gene therapy treatments. However, it's important to note that the company is quickly burning through cash, a common characteristic of biotech firms in the development stage.
Analysts anticipate a sales decline for TSHA in the current year, and the company is not expected to be profitable. This aligns with the company's focus on research and development, particularly as it prepares for the highly anticipated high dose data for TSHA-102 in 2025.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide deeper insights into TSHA's financial health and market position.
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