On Tuesday, Baird maintained an Outperform rating on shares of Taysha Gene Therapies (NASDAQ:TSHA) with a price target of $7.00. The firm anticipates Taysha's stock might rise following expected news from a competitor in the gene therapy space.
Neurogene (NGNE, Beatty) is slated to release initial clinical data from its NGN-401 study on Monday (NASDAQ:MNDY), November 11. Despite recent market pressures on Taysha's shares due to pre-data release activities by Neurogene, the analyst believes the selling is excessive.
The analyst from Baird highlighted that Taysha could benefit indirectly from Neurogene's upcoming announcement. Positive results from NGN-401 are seen as a potential validation for Rett gene therapies, a field in which Taysha is also active. The expectation is that success from Neurogene might reflect well on Taysha, suggesting a broader positive sentiment in the market for Rett syndrome treatments.
The recent financial move by Neurogene, a substantial private investment in public equity (PIPE) ahead of its data readout, has been interpreted by some investors as a signal of confidence in the forthcoming results. This has led to speculation and subsequent selling of Taysha's shares. However, Baird suggests that this reaction might be an overreaction, and the firm has designated Taysha as a 'Fresh Pick' in anticipation of the industry developments.
The analyst's reiteration of the $7.00 stock price target for Taysha comes at a time when the market is closely watching for any new data that could impact the gene therapy sector, particularly for treatments targeting Rett syndrome. Taysha's position in the market could be influenced by the outcome of Neurogene's announcement, as positive data could increase investor interest in similar therapies.
Investors and market watchers are now looking towards November 11 for Neurogene's data release, which could have implications for Taysha Gene Therapies' stock performance and the gene therapy industry at large. Taysha's current Outperform rating and price target remain unchanged as the market awaits these developments.
In other recent news, Taysha Gene Therapies has made substantial strides in its TSHA-102 gene therapy program for Rett Syndrome. The company 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.
Despite reporting a net loss of $20.9 million for the quarter, Taysha maintains a stable financial position with $172.7 million in cash, extended by a public follow-on offering into the fourth quarter of 2026.
BMO Capital Markets and Canaccord Genuity have maintained their Outperform and Buy ratings for Taysha, respectively, despite adjusting their price targets.
BMO highlighted the company's strategic advancements, including the extension of its cash runway and a shift in the timeline for the Phase 1/2 trial readout to the first half of 2025. Canaccord Genuity, on the other hand, emphasized Taysha's strategic regulatory engagement and the upcoming data presentations in 2025.
These recent developments underscore Taysha Gene Therapies' ongoing efforts to advance their TSHA-102 gene therapy candidate for Rett Syndrome.
InvestingPro Insights
As Taysha Gene Therapies (NASDAQ:TSHA) faces market pressures ahead of competitor Neurogene's data release, InvestingPro data provides additional context to the company's current position. With a market cap of $274.62 million, Taysha's stock has experienced significant volatility, reflected in a 28.72% decline over the past week and a 33.33% drop over the last month. This aligns with the InvestingPro Tip that the stock "has taken a big hit over the last week" and is "trading near 52-week low."
Despite these challenges, Taysha maintains a strong balance sheet position. An InvestingPro Tip notes that the company "holds more cash than debt on its balance sheet," which could provide financial flexibility as it navigates the competitive landscape of gene therapies. Moreover, the tip that "liquid assets exceed short term obligations" suggests a degree of financial stability in the near term.
However, investors should be aware that Taysha is "quickly burning through cash" and is "not profitable over the last twelve months," according to InvestingPro Tips. This context is crucial when considering Baird's optimistic $7.00 price target against the current trading price of $1.34.
For a more comprehensive analysis, InvestingPro offers 11 additional tips for Taysha Gene Therapies, providing investors with a deeper understanding of the company's financial health and market position.
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