Rocket Pharmaceuticals downgraded to Neutral from Buy at BofA

BofA downgraded Rocket Pharmaceuticals (RCKT) to Neutral from Buy with a price target of $4, down from $9. Given the FDA’s clinical hold on RP-A501, the decision to reduce expenses and re-prioritize the pipeline makes “financial and strategic sense,” the analyst tells investors. However, the firm also views the decision as “tacit acknowledgement that the outlook for the story’s primary value driver and anchor asset is likely to remain uncertain near term,” the analyst added. The firm thinks investors may be slow to re-engage, leaving shares range-bound in the near term.