Solid Biosciences: Undervalued Gem with Promising Gene Therapy Pipeline and Upcoming Catalysts

J.P. Morgan analyst Anupam Rama has reiterated their bullish stance on SLDB stock, giving a Buy rating on May 16.

Anupam Rama has given his Buy rating due to a combination of factors that highlight the potential of Solid Biosciences. The primary reason for the positive outlook is the anticipated data release for SGT-003, which is expected to be a significant catalyst for the company’s stock. The favorable regulatory environment for gene therapies and rare diseases in the U.S. further supports the potential success of SGT-003.
Anupam Rama also points out that Solid Biosciences has a promising pipeline beyond SGT-003, which could provide additional growth opportunities. The current valuation of SLDB shares appears to be disconnected from the probability-adjusted value of SGT-003, indicating that the stock is undervalued. This valuation mismatch, combined with the company’s strategic position in the gene therapy sector, underpins the Buy rating.

Rama covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, Neurocrine, and BridgeBio Pharma. According to TipRanks, Rama has an average return of -7.2% and a 37.10% success rate on recommended stocks.

In another report released on May 16, Piper Sandler also maintained a Buy rating on the stock with a $17.00 price target.