Soleno Therapeutics: Sustained U.S. Vykat XR Outperformance and European Upside Support Buy Rating and $100 Target

LifeSci Capital analyst Kate Dellorusso maintained a Buy rating on Soleno Therapeutics yesterday and set a price target of $100.00.

Kate Dellorusso has given his Buy rating due to a combination of factors that underscore both the strength of Soleno Therapeutics’ current performance and its future growth prospects. The initial U.S. launch of Vykat Xr has materially outpaced expectations, with preliminary Q4 revenue guidance coming in ahead of consensus and 2025 revenue targets reaffirmed despite a deceleration in new patient starts. Even though quarter-over-quarter patient additions have slowed and discontinuation rates have edged higher, the company continues to grow its base of prescribing physicians, which Dellorusso views as a critical lever for sustaining demand and deepening market penetration. Improving reimbursement coverage, now encompassing roughly 60% of covered lives and trending toward a near-term goal of approximately 80%, further de-risks the commercial trajectory and supports a durable revenue ramp.
Looking beyond the U.S., Kate Dellorusso points to the upcoming European regulatory decision as a meaningful catalyst, given the sizable and concentrated Prader-Willi Syndrome population across the EU4 and UK. The company’s response to Day 120 EMA questions keeps the timeline on track for a first-half 2026 decision, which, combined with the option to either partner or self-commercialize ex-U.S., adds a significant layer of upside optionality. While acknowledging prior volatility in launch momentum and the impact of a short report, Dellorusso concludes that the current data still supports a clear path to potential blockbuster status for Vykat in the U.S. alone, with Europe representing additional expansion. Reflecting these dynamics, the updated $100 per share price target encapsulates both the robust near-term revenue outlook and the longer-term global growth opportunity, justifying the Buy recommendation.

In another report released yesterday, Wolfe Research also maintained a Buy rating on the stock with a $60.00 price target.