Buy Rating for Stoke Therapeutics: Promising Dravet Syndrome Treatment Shows Significant Improvements

Ananda Ghosh, an analyst from H.C. Wainwright, maintained the Buy rating on Stoke Therapeutics. The associated price target is $35.00.

Ananda Ghosh has given his Buy rating due to a combination of factors that highlight the potential of Stoke Therapeutics’ treatment for Dravet Syndrome. The recent data from the open-label extension study showed significant improvements in key Vineland subdomains, which are crucial for the quality of life of patients with Dravet Syndrome. These improvements were not observed in the matched natural history cohort, suggesting that the treatment could offer clinically meaningful benefits.
Furthermore, the EMPEROR study is well-designed to support regulatory approval and market adoption, with its primary endpoint focusing on the reduction of major motor seizure frequency. This aligns with how pediatric neurologists assess therapeutic benefits. The positive trends in cognitive and behavioral outcomes from the open-label extension studies, if replicated in the EMPEROR trial, could lead to a disease-modifying label. This is particularly significant as current standards of care have not demonstrated improvements in cognition or intellectual ability for Dravet Syndrome patients.

In another report released yesterday, Canaccord Genuity also reiterated a Buy rating on the stock with a $20.00 price target.

Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of STOK in relation to earlier this year.