Buy Rating for Stoke Therapeutics with Adjusted Price Target Amid Regulatory and Developmental Progress

Canaccord Genuity analyst Sumant Kulkarni maintained a Buy rating on Stoke Therapeutics (STOK – Research Report) today and set a price target of $20.00.

Sumant Kulkarni’s rating is based on the anticipation of Stoke Therapeutics’ upcoming interactions with regulatory authorities, which are expected to shed light on the design of a pivotal study for their leading candidate, STK-001, targeting Dravet syndrome. Kulkarni sees potential for the stock to experience upside if the company aligns with regulators on the Phase 3 study design. He is encouraged by the recent capital raise which extends the company’s cash runway, ensuring financial stability through the end of 2025. Moreover, the company’s ongoing developments, including the initiation of the OSPREY Phase 1 study for STK-002 and its partnership with Acadia, are factors contributing to the Buy rating. Kulkarni believes that STOK shares have intrinsic value that is not yet fully realized by the market, especially considering the significant unmet need in Dravet syndrome and the potential for STK-001 to be a first-in-class disease-modifying therapy.

Kulkarni has also adjusted the price target for Stoke Therapeutics from $21 to $20, a slight decrease attributed to higher anticipated research and development expenses and an increase in the estimated share count following a recent capital infusion. Despite this small adjustment, he maintains a positive outlook on the stock, underpinned by a financial model that includes a 33% probability of approval for STK-001 and forecasts peak sales of $1.48 billion by 2035. The reduction in the price target is a result of a detailed discounted cash flow analysis, reflecting the changes in the company’s financial projections. Kulkarni’s Buy rating is thus supported by a comprehensive assessment of Stoke Therapeutics’ financial health, its strategic regulatory engagements, and the promising potential of its therapeutic pipeline.

In another report released today, H.C. Wainwright also maintained a Buy rating on the stock with a $35.00 price target.

Based on the recent corporate insider activity of 21 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.

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Stoke Therapeutics (STOK) Company Description:

Stoke Therapeutics, Inc. engages in the research and development of treatments for genetic diseases. It is a biotechnology firm that focuses to increase gene expression to treat severe genetic diseases, including genetic conditions affecting the central nervous system, eye, ear, kidney, and liver. The company was founded by Isabel Aznarez and Adrian R. Krainer in June 2014 and is headquartered in Bedford, MA.