Cautious Hold Rating on Regulus Amid Merger Uncertainties and Strategic Developments

Wells Fargo analyst Yanan Zhu has maintained their neutral stance on RGLS stock, giving a Hold rating on May 1.

Yanan Zhu has given his Hold rating due to a combination of factors surrounding Regulus’s recent financial performance and strategic developments. The company’s first-quarter results showed a net loss per share that was better than expected, which reflects some positive operational aspects. Additionally, Regulus maintains a solid cash position that is projected to support its operations into early 2026, aligning with previous guidance.
Despite these positive elements, the Hold rating is influenced by the uncertainties related to the ongoing merger with Novartis and the contingent value rights tied to the approval of farabursen. While the merger terms appear favorable, the completion of this transaction is anticipated in the second half of 2025, and the future financial benefits are contingent on regulatory approvals that extend into the next decade. These factors contribute to a cautious outlook, warranting a Hold recommendation.

Zhu covers the Healthcare sector, focusing on stocks such as uniQure, Sarepta Therapeutics, and Regulus. According to TipRanks, Zhu has an average return of -9.3% and a 23.87% success rate on recommended stocks.

In another report released on May 1, Leerink Partners also downgraded the stock to a Hold with a $7.00 price target.