Rocket Pharmaceuticals, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Mani Foroohar from Leerink Partners reiterated a Hold rating on the stock and has a $9.00 price target.
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Mani Foroohar has given his Hold rating due to a combination of factors related to Rocket Pharmaceuticals’ recent strategic decisions and ongoing challenges. The company has announced a significant reorganization, including a 30% reduction in workforce, which is expected to decrease operational expenses by approximately 25% over the next year. This move is seen as a prudent step to extend the company’s financial runway into the second quarter of 2027.
However, the Hold rating reflects ongoing uncertainties, particularly surrounding the Danon program, which has faced setbacks, including a patient death. The company’s ability to address these clinical challenges, clarify the need for specific treatments, and confirm future treatment regimens remains a focal point. Additionally, while potential revenue from priority review vouchers could improve the balance sheet, these efforts have encountered their own obstacles, contributing to the cautious outlook.
RCKT’s price has also changed dramatically for the past six months – from $10.710 to $3.210, which is a -70.03% drop .