Douglas Tsao, an analyst from H.C. Wainwright, reiterated the Buy rating on Rezolute (RZLT – Research Report). The associated price target remains the same with $14.00.
Douglas Tsao has given his Buy rating due to a combination of factors, including the positive recommendation by the independent data monitoring committee (DMC) for the continuation of the sunRIZE trial without any sample size adjustments. This decision supports Rezolute’s assumptions regarding the study’s power, which are based on promising results from the Phase 2 SIZE trial. The trial’s timeline remains on track, with topline results expected by December 2025, which is a positive indicator for potential investors.
Furthermore, the recent closing of an underwritten offering that raised approximately $97 million strengthens Rezolute’s financial position, allowing the company to continue developing its pipeline and supporting the launch of ersodetug. The FDA’s Breakthrough Therapy Designation for ersodetug and the successful DMC reviews enhance the drug’s prospects in the congenital hyperinsulinism market. Despite some financial and regulatory risks, the valuation of Rezolute’s stock, with a price target of $14, reflects confidence in the company’s future revenue potential and the probability of success for its key pipeline assets.
In another report released on April 24, Maxim Group also maintained a Buy rating on the stock with a $15.00 price target.