Rocket Pharmaceuticals stock reaction looks ‘overdone,’ says BofA

BofA analyst Greg Harrison lowered the firm’s price target on Rocket Pharmaceuticals to $35 from $38 and keeps a Buy rating on the shares, which were under "significant pressure" yesterday morning after the company’s press release outlining the pivotal development plan for Rocket’s Danon disease gene therapy. While acknowledging that "the tone of the commentary suggests a lack of firm commitment on the part of the FDA to Rocket’s proposed components of the plan," Harrison thinks that the stock reaction was "overdone" given that talks are continuing, he expects alignment prior to initiation of the trial and he argues that the data to date has been very positive and that the announcement "does not impact the clinical risk of the program." His lower target is driven by a change in the timing assumption for the Danon launch to 2026 from 2025.