Solid Biosciences initiated with a Buy at Citi

Citi analyst Yigal Nochomovitz initiated coverage of Solid Biosciences (SLDB) with a Buy rating and $14 price target. With the stock trading at a $100M enterprise value versus the potential to achieve $2.5B-$3B of peak U.S. sales in Duchenne muscular dystrophy, Solid’s risk/reward skew “presents significant appeal,” the analyst tells investors in a research note. The firm says the skew has become increasingly attractive following recent accelerating safety risks for key competitor Sarepta’s (SRPT) Elevidys. While the profile for Solid’s DMD gene therapy is “early and appropriately high-risk,” elements of potential differentiation versus Elevidys “are already in play” as SGT-003 shows no evidence of even mild live toxicity, contends Citi.