On Friday, Baird reaffirmed its positive stance on Soleno Therapeutics Inc. (NASDAQ:SLNO), maintaining an Outperform rating and a price target of $72.00. The firm's analyst highlighted an opportunity for investors to acquire Soleno shares amid recent market movements that have seen the stock's performance tied to that of Applied Therapeutics Inc (NASDAQ:APLT). The stock has demonstrated remarkable strength, posting a 96% return over the past year, with analyst targets ranging from $67 to $93.
Soleno Therapeutics' stock has been moving in tandem with Applied Therapeutics over the last few trading days, both being involved in FDA regulatory processes for their respective drug applications. However, the Baird analyst emphasized the distinct differences between the two companies' situations, suggesting that the comparison is not entirely appropriate.
The analyst pointed out that Soleno's drug candidate, DCCR, does not require significant regulatory leniency for approval, in contrast to Applied Therapeutics, which depended on the FDA's flexibility regarding traditional statistical benchmarks. This distinction, according to the analyst, presents an attractive entry point for investors to buy Soleno shares.
In other recent news, Soleno Therapeutics has been the focus of significant attention due to the FDA's extended review period for the company's New Drug Application for DCCR, a treatment for Prader-Willi syndrome. The FDA has not raised any safety or efficacy concerns and the new target action date is set for March 27, 2025.
Analyst firms such as Oppenheimer, Laidlaw, Baird, and Stifel have maintained a positive outlook on Soleno, with Oppenheimer recently raising its price target for the company based on updated sales projections.
Soleno Therapeutics has also seen changes in its Board of Directors, with the appointment of Matthew Pauls as the new Lead Independent (LON:IOG) Director and the addition of Dawn Carter Bir. The company has entered into an agreement with Jefferies LLC to potentially sell up to $150 million of its common stock and has awarded performance-based restricted stock units to its employees.
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