Passage Bio: Market Overreaction to AAV Oncogenesis Risk Creates Compelling Buy Opportunity Ahead of 2026 PBFT02 Catalysts

Wedbush analyst Yun Zhong maintained a Buy rating on Passage Bio today and set a price target of $32.00.

Yun Zhong has given his Buy rating due to a combination of factors related to risk assessment and future clinical catalysts. He argues that the recent pressure on Passage Bio’s share price stemming from the FDA’s clinical hold on REGENXBIO’s MPS I/II programs is disproportionate, as the underlying safety concern is not directly transferable to Passage’s program. In particular, he underscores that Passage’s lead asset PBFT02 targets an older frontotemporal dementia population, whose post-mitotic neuronal cells are far less prone to division, thereby materially lowering the theoretical risk of tumor formation from AAV vector integration. He further notes that historical AAV experience, including prior FDA investigations of potential oncogenic events, suggests integration events are rare and often confounded by significant pre-existing risk factors.

Yun Zhong also highlights upcoming development milestones as important drivers of value. He expects the PBFT02 clinical update in the first half of 2026 to expand the data set with longer follow-up and more treated patients, which he believes should reinforce both safety and efficacy signals. In his view, Passage Bio is well positioned to benefit from FDA’s recognition of the high unmet need in FTD, increasing the likelihood of an accelerated regulatory pathway. Taken together, these elements support his view that the market is over-discounting the AAV oncogenesis risk for Passage, creating an attractive entry point and justifying a Buy recommendation.