Piper Sandler maintained an Overweight rating and $25 price target on MeiraGTx Holdings plc (MGTX) in a note Monday after news that Sanofi (NASDAQ:SNY) is set to purchase $30 million of ordinary shares of the company at a price of $7.50 per share.
Analysts noted that the deal also affords Sanofi with a right of first negotiation across several riboswitch programs as well as the xerostomia program.
"Notably, this is just a right of first negotiation (ROFN; not right of first refusal), and - as noted in the press release - it appears deal news from this company is about to accelerate, given significant strategic interest," the analysts wrote.
There is "no change to our model on this development, but we do think it illustrates the significant underappreciated value inherent in this company's portfolio and capabilities," they added.
MGTX remains Piper Sandler's small-cap top pick, and they "continue to like the setup on this name," recommending shares to levels approaching $32.