Soleno Therapeutics: Strong VYKAT XR Outperformance, Solid Balance Sheet, and Global Growth Optionality Drive Higher Buy-Rated Target

Ram Selvaraju, an analyst from H.C. Wainwright, reiterated the Buy rating on Soleno Therapeutics. The associated price target was raised to $120.00.

Ram Selvaraju has given his Buy rating due to a combination of factors pointing to stronger-than-expected fundamentals and attractive upside. Soleno’s preliminary 2025 results show U.S. VYKAT XR revenues significantly ahead of his prior forecasts, with both full-year and fourth-quarter sales materially beating estimates, supported by robust patient starts and growing prescriber adoption. He also highlights that the drug’s discontinuation rate due to side effects aligns with expectations and that payer coverage has expanded to a sizeable portion of the U.S. insured population, reinforcing the sustainability of current demand trends. In addition, the company has already achieved profitability and strong positive cash flow, ending 2025 with an estimated ~$500M in cash even after executing a substantial share repurchase program, which Selvaraju views as evidence of balance sheet strength and shareholder-friendly capital allocation.
Selvaraju’s constructive view is further supported by the regulatory and long-term growth outlook for VYKAT XR. The firm remains on track for a potential European approval following its responses to EMA inquiries, which he sees as an incremental catalyst not yet reflected in his U.S.-only revenue base case. He has raised his 2025 and 2026 revenue and earnings projections, and continues to believe that VYKAT XR can ultimately reach multi-billion-dollar peak sales in the U.S. by the mid-2030s, even under conservative market penetration assumptions and excluding ex-U.S. contributions. Combined with management’s flexibility to pursue accretive M&A or licensing deals, these dynamics underpin his decision to reiterate a Buy rating and increase his 12‑month price target to $120 per share.

In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $114.00 price target.