Tenaya Therapeutics initiated with an Outperform at Leerink

Leerink analyst Mani Foroohar initiated coverage of Tenaya Therapeutics with an Outperform rating and $7 price target. While lead gene therapy asset TN-201 is the major long-term driver of shares, key near-term debates focus on balance sheet and cash runway, making BD optionality for small molecule TN-301 for heart failure with preserved ejection fraction the greater near-term focus, the firm notes. With Phase 1 data in hand for TN-301, and clinical data expected in 2024 for both TN-201 and follow-on cardiac gene therapy TN-401, Leerink believes that a favorable outcome for any of these assets would trigger a meaningful re-rating of shares from the current, undemanding valuation. As such, the firm sees many more ways to win than lose in Tenaya’s shares over the next 12 months.