On Monday, Piper Sandler adjusted its outlook on Taysha Gene Therapies (NASDAQ:TSHA) shares, reducing the price target to $7.00 from the previous $9.00, while retaining an Overweight rating on the company's stock.
The financial firm's decision comes after considering the biotechnology company's recent funding activities, which included the conversion of pre-funded warrants into common shares.
The revised price target reflects a reassessment of the company's financial model in the wake of its recent financing, which was both larger and slightly earlier than Piper Sandler had anticipated. The firm had initially modeled a 27.0 million share raise in the third quarter of 2024, but the actual financing outpaced these projections.
Despite a downturn in the stock's performance following preliminary pediatric data and more comprehensive adolescent/adult data for Taysha's gene therapy candidate TSHA-102, Piper Sandler remains optimistic. The analyst firm believes that forthcoming positive high-dose data from TSHA-102 could potentially restore value to the company's shares.
Taysha Gene Therapies is anticipated to provide an initial update on TSHA-102 by the end of the year. Piper Sandler's stance suggests that the potential rewards outweigh the risks for investors, indicating a positive outlook for the company's stock performance moving forward.
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