Enanta Pharmaceuticals (ENTA – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on February 21. Analyst Roanna Ruiz from Leerink Partners maintained a Hold rating on the stock and has a $8.00 price target.
Roanna Ruiz has given his Hold rating due to a combination of factors impacting Enanta Pharmaceuticals. The company’s fiscal 1Q25 revenues were in line with expectations, driven entirely by Mavyret royalties, and they are making strides in their immunology franchise with promising developments like the KIT inhibitor EPS-1421 and a new STAT6 program. However, the focus remains on the Phase 2 RSVHR study of zelicapavir, with data anticipated in 3Q25, which will be crucial in assessing its potential in high-risk adults.
Despite these advancements, there are concerns about the timing of product launches. The expected launch dates for the RSV and COVID-19 programs have been delayed by approximately one and two years, respectively, to 2027 and 2028. This reflects the extended timeline needed for clinical and regulatory processes. Additionally, while Enanta has a strong cash position that should support operations until fiscal 2028, these delays and the associated risks contribute to the Hold rating, alongside a reduced price target from $10 to $8.
Based on the recent corporate insider activity of 29 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 ENTA in relation to earlier this year.
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