Rocket Pharmaceuticals (RCKT) PT Lowered to $32 at BofA Securities

BofA Securities analyst Greg Harrison lowered the price target on Rocket Pharmaceuticals (NASDAQ: RCKT) to $32.00 (from $34.00) while maintaining a Buy rating.

The analyst comments "While Rocket’s incremental 1Q update was likely overshadowed by its late-breaker oral at ASGCT (see below), we were nonetheless encouraged by the progress and continue to like the 2H setup. GAAP EPS was modestly ahead of BB cons (+$0.02), but more critically, the runway ($318M) should be enough to extend into 4Q26, sufficient to turn over a number of key cards. Indeed, 1) Rocket re-iterated plans to provide an update on RP-A501’s pivotal phase 2 for Danon mid-year—with the read-out still on track for mid26; 2) the rolling submission of RP-L102 BLA for Fanconi Anemia remains on pace for completion YE25/ early ‘26, with EMA’s review underway; 3) FDA’s review of Kresladi’s updated CMC is ongoing, with management looking to submit the complete BLA 2025; and 4) the team continues to targeting a mid-year submission of its BAG3 program IND. Admittedly, we suspect none of the nearer-term catalysts by themselves are likely to improve sentiment, which we think has been weighed more by broader concerns over FDA’s re-alignment—including departure of several figures historically supportive of gene-therapies (YTD RCKT -50% vs. NBI -5%). That said given encouraging signs of clinical efficacy, highlighted by RP-A601’s positive dose-escalation data (no DLTs; increased expression/ localization of PKP2, desmocollin-2, and cadherin-2; and positive clinical outcomes in terms of arrhythmia burden, heart function, and QoL), we continue to see opportunities for a re-rating as Rocket moves towards commercialization—with compelling risk/reward in our view. Reiterate Buy, decreasing our PO to $32 from $34 after accounting for latest financial disclosures and increasing our WACC to 18% from 17% to reflect the macro uncertainties."

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