On Thursday, Ocular Therapeutix (NASDAQ:OCUL) stock received an upgrade from a Hold to a Buy rating by TD Cowen, with the price target being increased to $11 from $7.
The biopharmaceutical company, which specializes in eye care treatments, saw its shares positively reassessed based on several ongoing developments in its clinical programs.
The analyst from TD Cowen cited the successful enrollment progress of the SOL-1 trial as a key driver for the upgrade. The trial's advancement is attributed to the experienced team and strong support from key opinion leaders (KOLs). The anticipation of the SOL-1 trial's success, along with the SOL-R redosing feature, is expected to facilitate real-world application and promote further trial participation.
Additionally, the company's product, Axpaxli, has shown activity in treating Non-Proliferative Diabetic Retinopathy (NPDR), which affects an estimated 6.3 million patients. This indication could represent a significant market opportunity for Ocular Therapeutix.
The firm also pointed out that Ocular Therapeutix's pipeline for treating exudative age-related macular degeneration (ex-wAMD) is undervalued. The revised $11 price target is based on a discounted cash flow (DCF) analysis, reflecting the firm's optimism about the company's future prospects.
Shares of Ocular Therapeutix are likely to respond to the new rating and price target as investors and market participants digest the implications of the company's clinical and commercial potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.