RegenXBio, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Alec Stranahan from Bank of America Securities maintained a Buy rating on the stock and has a $20.00 price target.
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Alec Stranahan has given his Buy rating due to a combination of factors highlighting RegenXBio’s strong position in the market. The company’s end-to-end manufacturing capabilities are a significant advantage, as they ensure the safe and efficient production of doses at a commercial scale, which is crucial for upcoming launches, particularly in the Duchenne Muscular Dystrophy (DMD) space. The high percentage of full capsids produced by RegenXBio, achieved through advanced ion exchange chromatography methods, sets them apart from competitors and reduces the total viral load required, enhancing their regulatory standing.
Moreover, RegenXBio’s in-house production process significantly lowers the cost of goods sold (COGS) compared to outsourcing, allowing for faster production timelines and immediate quality control. This capability is particularly important given the recent safety concerns in the gene therapy market. Additionally, the updated label for a competitor’s product, Elevidys, which includes restrictions due to safety issues, does not seem to affect RegenXBio’s RGX-202, further supporting its potential for broad use and differentiation. These factors collectively bolster confidence in RegenXBio’s future commercial success and justify the Buy rating.
In another report released on November 7, Morgan Stanley also maintained a Buy rating on the stock with a $25.00 price target.
RGNX’s price has also changed moderately for the past six months – from $8.330 to $11.510, which is a 38.18% increase.