Soleno Therapeutics (NASDAQ:SLNO) Receives "Hold" Rating from TD Cowen

Key Points

• TD Cowen reaffirmed a "hold" on Soleno and cut its price target to $53 from $85, implying roughly a 1.4% upside from the prior close while the consensus MarketBeat rating is "Hold" (average target $93.90).
• Neurocrine agreed to acquire Soleno for $53.00 per share in cash (about $2.9 billion), a roughly 34% premium to pre-announcement levels.
• Multiple securities class-action lawsuits and shareholder fairness probes have been filed over disclosures around VYKAT XR and the deal price, and Soleno also withdrew its EU marketing application for VYKAT XR, creating legal and regulatory risks that could affect the deal or the drug's international prospects.

Soleno Therapeutics (NASDAQ:SLNO - Get Free Report)'s stock had its "hold" rating reaffirmed by TD Cowen in a research note issued to investors on Tuesday,Benzinga reports. They currently have a $53.00 price objective on the stock, down from their previous price objective of $85.00. TD Cowen's target price suggests a potential upside of 1.41% from the stock's previous close.

A number of other research firms have also recently weighed in on SLNO. Lifesci Capital cut Soleno Therapeutics from a "strong-buy" rating to a "hold" rating in a report on Monday. Zacks Research cut Soleno Therapeutics from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 3rd. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Soleno Therapeutics in a report on Thursday, January 22nd. HC Wainwright cut their price target on Soleno Therapeutics from $120.00 to $100.00 and set a "buy" rating on the stock in a report on Wednesday, March 4th. Finally, Wells Fargo & Company cut their price target on Soleno Therapeutics from $114.00 to $110.00 and set an "overweight" rating on the stock in a report on Friday, February 27th. Seven equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $93.90.

Soleno Therapeutics Stock Performance

Shares of SLNO traded up $0.02 during mid-day trading on Tuesday, reaching $52.27. 4,501,987 shares of the company's stock traded hands, compared to its average volume of 2,535,892. The business's 50-day moving average price is $37.99 and its 200-day moving average price is $47.81. The stock has a market capitalization of $2.70 billion, a P/E ratio of 227.20 and a beta of -2.81. The company has a debt-to-equity ratio of 0.11, a quick ratio of 5.55 and a current ratio of 5.80. Soleno Therapeutics has a 12 month low of $29.43 and a 12 month high of $90.32.

Soleno Therapeutics (NASDAQ:SLNO - Get Free Report) last released its quarterly earnings results on Wednesday, February 25th. The company reported $0.80 earnings per share for the quarter, beating analysts' consensus estimates of $0.64 by $0.16. The business had revenue of $91.73 million for the quarter, compared to the consensus estimate of $88.55 million. Equities analysts predict that Soleno Therapeutics will post -3.72 earnings per share for the current year.

Institutional Investors Weigh In On Soleno Therapeutics

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Raymond James Financial Inc. bought a new stake in Soleno Therapeutics during the second quarter worth approximately $25,000. Danske Bank A S bought a new stake in Soleno Therapeutics during the third quarter worth approximately $27,000. Aster Capital Management DIFC Ltd bought a new stake in Soleno Therapeutics during the third quarter worth approximately $37,000. Global Retirement Partners LLC raised its holdings in Soleno Therapeutics by 519.0% during the fourth quarter. Global Retirement Partners LLC now owns 619 shares of the company's stock worth $29,000 after purchasing an additional 519 shares in the last quarter. Finally, Quarry LP bought a new stake in Soleno Therapeutics during the third quarter worth approximately $47,000. Institutional investors own 97.42% of the company's stock.

Trending Headlines about Soleno Therapeutics

Here are the key news stories impacting Soleno Therapeutics this week:

• Positive Sentiment: Neurocrine agreed to acquire Soleno for $53.00 per share in cash (~$2.9 billion), a ~34% premium to pre-announcement levels; Neurocrine says VYKAT XR strengthens its rare-disease portfolio and a conference call was scheduled to discuss the transaction. Neurocrine to acquire Soleno (BusinessWire)
• Neutral Sentiment: Trading in SLNO was temporarily halted prior to the announcement for “news pending,” a routine market response that preceded the takeover disclosure and limited intraday liquidity around the news.
• Negative Sentiment: Multiple securities class-action lawsuits and law-firm solicitations have been filed or announced alleging that Soleno misstated or concealed risks around its DCCR/VYKAT XR program; firms (Rosen, Hagens Berman, Bronstein, Levi & Korsinsky, Schall, Gross, DJS and others) are soliciting lead plaintiffs with a May 5 deadline. This litigation creates legal risk, potential settlement costs and distraction for management. Investor alert / class action (GlobeNewswire)
• Negative Sentiment: Several shareholder-rights firms and advisors are investigating whether the $53 per-share deal is fair to Soleno public shareholders and whether the board fulfilled fiduciary duties — these fairness probes can lead to litigation or demands that delay closing or alter terms. Fairness investigation (Halper Sadeh / BusinessWire)
• Negative Sentiment: Analyst sentiment has soured: Cantor Fitzgerald cut SLNO to “hold” and trimmed its price target to $53 (now aligned with the deal price) and Lifesci Capital downgraded from “strong-buy” to “hold.” These downgrades can dampen buying interest absent a higher bid or strategic alternative. Cantor Fitzgerald downgrade (Benzinga) Lifesci downgrade (Zacks)
• Negative Sentiment: Soleno voluntarily withdrew its EU marketing application for the Prader–Willi hyperphagia treatment (VYKAT XR), which could limit near-term international expansion and reduces the product’s addressable market outside the U.S. EU application withdrawal (TipRanks)

Soleno Therapeutics Company Profile

Soleno Therapeutics, Inc is a clinical‐stage biopharmaceutical company focused on the development and commercialization of therapies for rare and orphan diseases. Headquartered in Redwood City, California, Soleno leverages a precision medicine approach to identify and advance small‐molecule treatments that address underlying genetic and metabolic dysfunctions. The company's scientific strategy centers on repurposing and reformulating existing compounds to maximize therapeutic benefit in underserved patient populations.

The company's lead candidate, diazoxide choline controlled release (DCCR), is being investigated for the treatment of Prader-Willi syndrome (PWS), a complex neurodevelopmental disorder characterized by insatiable appetite, hormonal imbalances and behavioral challenges.

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