On Monday, BMO Capital Markets maintained its Outperform rating and $67.00 price target on Silence Therapeutics (NASDAQ:SLN), a biotechnology company specializing in the development of RNA interference (RNAi) therapeutics. Currently trading at $7.92, InvestingPro data shows the stock has experienced a significant decline, down over 54% year-to-date, though it has shown recent signs of recovery with a nearly 10% gain in the past week. The firm's stance comes after a recent downturn in the company's stock value, prompting a survey of investors to gauge sentiment and expectations.
The survey, which included responses from 18 investors, revealed that approximately 70% anticipate a partnership for Silence Therapeutics' drug candidate Zerlasiran will be formed following the cardiovascular outcome trial (CVOT) results for Pelacarsen and before the initiation of phase III trials for Zerlasiran.
Additionally, the same proportion of investors believes that an announcement of a Zerlasiran partnership could potentially double the stock price or more. According to InvestingPro analysis, analyst price targets range from $31 to $75, suggesting significant upside potential from current levels.
The investor sentiment also suggests that the risk/reward profile for Silence Therapeutics surrounding the CVOT results for Pelacarsen is tilted favorably. BMO Capital's analysis supports this outlook, suggesting that the recent decline in the company's stock price is an overreaction. This view is reinforced by InvestingPro technical indicators showing the stock is currently in oversold territory. The firm anticipates that a positive outcome from the Pelacarsen trial, along with a potential partnership for Zerlasiran, could lead to a significant surge in the stock's value, with projections of a 100-200% increase.
Silence Therapeutics has been focusing on the development of its RNAi platform, which aims to silence disease-causing genes. The company maintains a strong financial position with more cash than debt and a healthy current ratio of 9.31, indicating solid liquidity to support its development programs. The company's pipeline includes Zerlasiran, designed to treat hypercholesterolemia, and Pelacarsen, targeting cardiovascular disease. The outcomes of these developments are closely watched by investors, as they could have a considerable impact on the company's future and stock performance.
The firm's continued confidence in Silence Therapeutics is based on the potential clinical and commercial success of the company's product candidates. The forecasted upside is significant and hinges on the upcoming clinical trial readouts and the strategic business developments expected in the near future.
In other recent news, Silence Therapeutics has been making significant strides in the biotechnology sector. The company reported promising results from its Phase 2 trial, ALPACAR-360, for their lead siRNA candidate, Zerlasiran. The data, presented at the American Heart Association Scientific Sessions, showcased the drug's potential efficacy, leading to more than 80% mean time-averaged placebo-adjusted reductions in Lp(a) concentrations over a 36-week period.
Despite concerns about the potential impact of Muvalaplin, a competitive oral medication, BMO Capital believes the market's reaction is excessive. The firm reiterated its Outperform rating and $67.00 price target on Silence Therapeutics' stock. Similarly, H.C. Wainwright maintained its Buy rating and a $75.00 price target, underscoring their confidence in the company's prospects.
Jefferies also initiated coverage on the company's stock with a Buy rating, highlighting the potential of Zerlasiran. Moreover, Silence Therapeutics' second candidate for treating Polycythemia Vera demonstrated promising Phase 1 data. The firm also received a $2.0 million milestone payment from Hansoh Pharmaceutical (TADAWUL:2070) Group Company Limited, marking progress in their partnership to develop short interfering RNAs.
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