BofA upgrades Rocket Pharmaceuticals to Buy after clinical hold lifted

As previously reported, BofA upgraded Rocket Pharmaceuticals (RCKT) to Buy from Neutral with a price target of $10, up from $4, after the FDA lifted the clinical hold on the company’s Phase 2 trial of RP-A501 for the treatment of Danon disease. Rocket’s restructuring had suggested the process to have the hold lifted would be “lengthy,” so today’s news is “positive surprise” that removes a key overhang and sets up a path to shares re-rating, the analyst tells investors. Following the update, the firm is increasing its view on the odds of success for ‘A501 to 50% from 15%, while maintaining its “more conservative” 2028 launch assumption.