Needham analyst Gil Blum has maintained their neutral stance on RCKT stock, giving a Hold rating on August 11.
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Gil Blum has given his Hold rating due to a combination of factors surrounding Rocket Pharmaceuticals’ recent developments. The company has received approval from the FDA to continue its Phase II study of RP-A501 for Danon Disease after a previous clinical hold due to a patient fatality. This resumption is a positive step, yet it comes with the caveat of administering a lower dose, which introduces uncertainty regarding the treatment’s efficacy.
While the rapid lifting of the clinical hold highlights the significant need for treatments in Danon Disease, the changes in the study protocol, including the use of eculizumab for complement activation, add layers of complexity. The uncertainty about achieving the desired levels of LAMP2B expression and its impact on left ventricular mass reduction contributes to the cautious stance. As a result, maintaining a Hold rating reflects the balance between optimism for the resumption and the uncertainties that remain.
In another report released on August 11, Leerink Partners also reiterated a Hold rating on the stock with a $9.00 price target.
Based on the recent corporate insider activity of 47 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 RCKT in relation to earlier this year.