In a report released yesterday, Judah Frommer from Morgan Stanley maintained a Buy rating on RegenXBio (RGNX – Research Report), with a price target of $24.00.
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Judah Frommer has given his Buy rating due to a combination of factors that strengthen RegenXBio’s financial position and growth prospects. The recent royalty monetization agreement with Healthcare Royalty provides RegenXBio with up to $250 million in funding, including an immediate $150 million, which extends the company’s operational runway into early 2027. This financial boost is expected to support the company through significant upcoming milestones, such as the potential FDA approval of RGX-121 and other key clinical developments.
Additionally, the agreement includes the potential for an extra $100 million if specific conditions are met, further enhancing the company’s financial stability. The deal also involves a 10-year warrant for Healthcare Royalty to purchase RegenXBio shares, indicating confidence in the stock’s undervaluation. Furthermore, potential non-dilutive funding sources, such as PRV monetization and milestone payments from collaborations, could provide additional financial flexibility and support commercialization efforts. These factors collectively contribute to the positive outlook and the Buy rating for RegenXBio.
According to TipRanks, Frommer is an analyst with an average return of -5.7% and a 44.21% success rate. Frommer covers the Healthcare sector, focusing on stocks such as Galapagos, RegenXBio, and PTC Therapeutics.
In another report released on May 14, Bank of America Securities also maintained a Buy rating on the stock with a $22.00 price target.