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Tenaya shares target cut, analyst keeps buy rating

EditorAhmed Abdulazez Abdulkadir
Published 16/05/2024, 12:38
TNYA
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On Thursday, Canaccord Genuity maintained a Buy rating on Tenaya Therapeutics Inc (NASDAQ:TNYA) but lowered the price target to $16.00 from $18.00. The adjustment followed Tenaya's first-quarter 2024 earnings report, which the firm described as uneventful. The company's pipeline updates were reported to be largely on track.

The focus for Tenaya continues to be on its lead AAV program, TN-201, which is currently enrolling patients in a Phase 1b study. Expectations are set for initial safety, biopsy, and biomarker data from the first cohort of patients to be available in the second half of 2024. This data is anticipated to provide insights into the program's progress.

Additionally, Tenaya's second gene therapy program, TN-401, is progressing as planned. Patient dosing for its Phase 1b study is scheduled to begin in the second half of 2024, with the first two clinical sites already activated. This marks a significant step forward in the development of TN-401.

On the earlier stage pipeline, Tenaya has made recent presentations at the American Society of Gene & Cell Therapy (ASGCT) conference in Baltimore. These presentations included posters that highlighted the efficacy of a second-generation vector for the PLN-R14del gene editing program. The research showcased at ASGCT demonstrated Tenaya's commitment to advancing its early-stage projects.

InvestingPro Insights

In the wake of Tenaya Therapeutics Inc's (NASDAQ:TNYA) latest earnings report and pipeline updates, a closer look at the company's financial health and market performance is provided by InvestingPro. Tenaya's balance sheet reflects a strategic advantage, holding more cash than debt, which could support its ongoing research and development activities. Additionally, the company's liquid assets surpass its short-term obligations, suggesting a level of financial stability in the near term.

However, it's important to note that Tenaya is experiencing a rapid cash burn and has weak gross profit margins, which are areas of concern for investors. The company has also not been profitable over the last twelve months, and analysts do not expect it to be profitable this year. On the market side, Tenaya has seen a large price uptick over the last six months, yet its year-to-date return indicates volatility with a significant price fluctuation.

InvestingPro data shows a market capitalization of $333.7 million, and the stock is trading at a price-to-book ratio of 2.11 as of the last twelve months ending Q1 2024. Despite not paying dividends, which may deter income-focused investors, the company's stock has demonstrated a remarkable 134.81% price total return over the past six months, capturing the attention of growth-oriented investors.

For those considering an investment in Tenaya, it's crucial to weigh these financial metrics and market performance indicators. For a deeper dive into Tenaya's prospects, including additional InvestingPro Tips, visit https://www.investing.com/pro/TNYA. There are 7 additional InvestingPro Tips available, which could further inform your investment decision. Plus, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing your investment research with valuable insights and data.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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