On Wednesday, BMO Capital reaffirmed its positive stance on Silence Therapeutics (NASDAQ:SLN), maintaining an Outperform rating and a $67.00 stock price target for the company's shares.
The endorsement comes despite a recent decline in the company's stock price, which was attributed to unmet investor expectations for additional Lp(a) data or a partnership announcement, as well as a "sell-the-news" effect following the Phase II Zirlesiran data release.
The BMO Capital analyst expressed strong confidence in Silence Therapeutics, citing several key factors. Firstly, the company's pipeline includes two clinically de-risked and differentiated programs that have the potential to generate multi-billion dollar commercial opportunities.
Secondly, Silence Therapeutics is noted as the only major player in the siRNA/antisense oligonucleotide (ASO) space with a market valuation under $1 billion, in contrast to its peers like Alnylam Pharmaceuticals, Ionis Pharmaceuticals (NASDAQ:IONS), and Arrowhead Pharmaceuticals (NASDAQ:ARWR).
Moreover, the analyst highlighted that Silence Therapeutics has multiple potential stock-moving events lined up for 2024, including the possibility of securing a partnership for Zirlesiran. This anticipation of future catalysts, combined with the current lower valuation, was presented as a compelling reason for investors to consider buying the stock, especially during periods of weakness.
Silence Therapeutics focuses on the development of gene-silencing therapies for the treatment of serious diseases. The company's commitment to advancing its pipeline and the potential for significant partnerships are key aspects of its growth strategy, as emphasized by BMO Capital's reiterated rating and price target.
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