Stoke Therapeutics’ Promising Outlook: Buy Rating Backed by Zorevenersen’s Potential and Strong Financial Position

Stoke Therapeutics (STOK – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Thomas Shrader from BTIG maintained a Buy rating on the stock and has a $29.00 price target.

Thomas Shrader has given his Buy rating due to a combination of factors that highlight the potential of Stoke Therapeutics’ lead drug, Zorevenersen. The drug is currently in the P3 EMPEROR trial phase, and there is significant interest from patients and caregivers, indicating a strong demand. Despite skepticism from some in the investment community about the crowded treatment landscape for Dravet syndrome, Zorevenersen has shown promising results in previous trials, particularly for patients who have exhausted other treatment options. These patients experienced a substantial reduction in seizures, and the ongoing open-label extension study continues to show improvements over time.
Moreover, the financial position of Stoke Therapeutics is robust, with $380.3 million in cash, which is expected to fund operations until mid-2028. The recent collaboration with Biogen to develop and commercialize STK-001 further strengthens Stoke’s position, providing significant upfront payments and potential milestone earnings. Additionally, the Rhett program collaboration with Acadia is seen as a low-risk venture, given the well-understood genetics involved. These factors, along with the large target market for Dravet syndrome, support the Buy rating for Stoke Therapeutics’ stock.

Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of STOK in relation to earlier this year.