Stoke Therapeutics: Strategic Positioning and Financial Health Drive Buy Rating Amid Upcoming Phase 3 Trial for Dravet Syndrome Treatment

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

Sumant Kulkarni has given his Buy rating due to a combination of factors including Stoke Therapeutics’ strategic positioning and financial health. The company is well-capitalized, which positions it effectively to execute its plans, particularly the upcoming global Phase 3 trial for zorenuversen, a potential first-ever disease-modifying treatment for Dravet syndrome. This trial is set to begin in the second quarter of 2025, with top-line data expected in the second half of 2027.
Additionally, the collaboration with Biogen is seen as strategically sound, leveraging Biogen’s expertise in anti-sense oligonucleotide products and their strong global commercial capabilities. Despite the catalysts being some time away, the analyst views Stoke Therapeutics as significantly undervalued, given the high unmet need for treatments in Dravet syndrome. The company’s cash reserves are expected to sustain operations beyond the anticipated timeline for the trial’s data, supporting the Buy rating and a price target of $20.

In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $29.00 price target.

Based on the recent corporate insider activity of 41 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.