Dec. 17 at 10:00 PM
Raymond James🏁
$LXEO Strong Buy/
$25
$LRMR $BIIB
$RCKT $TNYA
Raymond James said in its note:
Initiating coverage of Lexeo Therapeutics (LXEO) with a Strong Buy rating and
$25 price target, as we think Lexeo's lead asset LX2006 (AAV gene therapy for cardiomyopathy associated with Friedreich's Ataxia) is well-positioned for success in its pivotal trial, based on strong results from two Phase 1/2 clinical trials and constructive feedback from FDA.
While pivotal data from this program is not anticipated until 1H27, we anticipate the stock will move next year on a finalized pivotal protocol with FDA and initial POC data on a second, unmodeled gene therapy asset - LX2020 for PKP2-ACM.
We model LX2006 revenue of
$14.1M,
$107.1M,
$255.5M,
$418.1M,
$599.3M and
$805.3M for FY27-32, respectively. Assigning an 11x forward EV/revenue multiple to our FY32 revenue estimate of
$805.3M, discounted back at an annual 20% discount rate, we derive a price target of
$25.
