Morgan Stanley Reaffirms Overweight Rating for Engene Holdings Inc. (ENGN) at $40 Price Target
Morgan Stanley has affirmed its Overweight rating for Engene Holdings Inc. (NASDAQ: ENGN) with a price target of $40, following the release of initial data on detalimogene, a new therapy for non-muscle invasive bladder cancer (NMIBC). Despite mixed reactions to the data, Morgan Stanley sees potential for detalimogene to become a significant therapy in the NMIBC treatment landscape.
The preliminary results from Engene's detalimogene LEGEND study are based on data from 21 out of 100 targeted patients. While the early results are promising, Morgan Stanley advises caution in drawing conclusions due to the limited data set. The lack of near-term clinical catalysts may keep investor attention at bay until the next update in 2025.
Engene Holdings Inc. also announced key developments related to their gene therapy, EG-70, currently in clinical trials for NMIBC. Oppenheimer maintains an Outperform rating for Engene, projecting the potential of EG-70 due to its non-viral gene therapy nature. The company's financial position looks robust following a $200 million private investment in public equity.
With a market capitalization of $283.42 million, Engene's P/E ratio stands at -1.58, indicating market anticipation of future profits despite current losses. The negative PEG ratio of -0.05 suggests the market expects improvement in Engene's situation. InvestingPro Fair Value estimate is $7.33, higher than the previous close price of $6.25, indicating potential upside for the stock.
In conclusion, Engene Holdings Inc. shows promise in the biotech field, with potential for detalimogene and EG-70 to impact the NMIBC treatment paradigm. Investors should consider the company's financial health and long-term prospects before making investment decisions.