Soleno Therapeutics initiated with an Overweight at Cantor Fitzgerald

Cantor Fitzgerald analyst Kristen Kluska initiated coverage of Soleno Therapeutics with an Overweight rating and $19 price target. Soleno’s lead program, diazoxide choline controlled-release, is currently in Phase 3 development for Prader-Willi syndrome, and the findings in Q3 should be positive, the analyst tells investors in a research note. The company is also conducting an open-label extension and four-month randomized withdrawal period study, where top-line data are also guided for Q3, says the firm. Cantor thinks the stock’s upside potential is much higher than any downside risk heading into the “near-term binary events.”