Geron Stock: Undervalued with Long-Term Growth Potential Despite Management Challenges

Leerink Partners analyst Faisal Khurshid has reiterated their bullish stance on GERN stock, giving a Buy rating on February 27.

Faisal Khurshid’s rating is based on the belief that despite current challenges, Geron’s stock is undervalued and has potential for growth. The recent earnings call revealed issues with management’s execution and communication regarding the Rytelo launch, which has led to a flat sales trajectory. However, Khurshid sees the stock as oversold and believes that the drug’s clinical profile should support its market performance in the long run.
While management has not provided a clear explanation for the sales slowdown, they have acknowledged seasonality as a factor and are working on improving their analytical capabilities. They are also implementing a more structured sales strategy. Khurshid’s Buy rating reflects confidence that these efforts, combined with the drug’s inherent potential, can lead to a turnaround, although it requires investors to remain patient and focus on the long-term prospects.

Khurshid covers the Healthcare sector, focusing on stocks such as Geron, Pliant Therapeutics, and Ironwood Pharma. According to TipRanks, Khurshid has an average return of 36.6% and a 51.85% success rate on recommended stocks.

In another report released on February 27, Stifel Nicolaus also maintained a Buy rating on the stock with a $4.00 price target.