Tuesday, RBC Capital Markets adjusted the shares price target for Adverum Biotechnologies (NASDAQ:ADVM) to $2.00, a decrease from the previous $3.00, while maintaining a Sector Perform rating on the stock. The firm's decision comes in the wake of Adverum's fourth quarter and full-year 2023 financial report.
Adverum is expected to release full 6-month results from its LUNA study by mid-2024. Additionally, the company has plans to begin a Phase III trial in the first half of 2025. RBC Capital's analysis acknowledges that recent data indicates potential improvements in treatment outcomes by lowering doses and increasing steroid exposure.
Despite the positive developments, RBC Capital maintains a cautious stance due to Adverum's history of clinical challenges. There have been five clinically significant cases of inflammation and hypotony in patients with diabetic macular edema (DME) treated by Adverum. Moreover, instances of late inflammation were observed in earlier trials.
The revised price target to $2.00 reflects both the recent quarterly financial results and the outcome of a private investment in public equity (PIPE) transaction. RBC Capital's position remains watchful, as they await further evidence to mitigate the risks associated with Adverum's clinical developments.
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