Sol-Gel: SGT-610 as Core Value Driver Underpins $50 Target and Buy Rating Despite Pipeline Setbacks

In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Sol-Gel Technologies, with a price target of $50.00.

Ram Selvaraju has given his Buy rating due to a combination of factors tied primarily to Sol-Gel’s core late-stage asset and its limited impact from pipeline setbacks. He notes that the discontinuation of SGT-210 in Darier disease, following proof-of-concept results that failed to show efficacy versus vehicle, does not change his valuation because this program had not been included in his financial model. The company may still seek niche opportunities for SGT-210 via small proof-of-concept efforts, but the current investment thesis is not dependent on that asset.

Selvaraju’s positive stance is driven mainly by SGT-610, which he identifies as the principal value driver given its potential to become the first approved therapy to prevent new basal cell carcinoma lesions in Gorlin syndrome. He highlights a sizable market opportunity, with projected peak sales above $300 million and expected launch around 2027, supported by an ongoing Phase 3 trial that has completed enrollment and should report top-line data in late 2026. His discounted cash flow analysis assigns substantial value to SGT-610 under a risk-adjusted framework, leading to an overall firm valuation that supports a $50 per-share 12‑month price target. Despite acknowledging clinical, regulatory, pipeline, and dilution risks, he concludes the risk-reward profile remains favorable, justifying a Buy recommendation.

According to TipRanks, Selvaraju is a 5-star analyst with an average return of 25.1% and a 56.71% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Vanda, Genmab, and Anavex Life Sciences.