Last Updated: 17 Sep 2024
Executive Summary
Soleno Therapeutics Inc. (SLNO) is a clinical-stage biopharmaceutical company focused on developing and commercializing novel therapies for rare diseases. With its headquarters in Redwood City, California, the company has a market capitalization of $2.05 billion and is publicly traded on the NASDAQ exchange. Despite its strong analyst support, SLNO's financial performance has been weak, with negative earnings and revenue. The latest stock price is $52.79.
Company Overview
Soleno Therapeutics is dedicated to addressing unmet medical needs in rare diseases. The company's pipeline includes multiple clinical-stage candidates targeting various rare conditions, such as Friedreich's ataxia and Charcot-Marie-Tooth disease. Soleno's research and development efforts focus on utilizing innovative technologies, including gene therapy and small molecule therapeutics.
Fundamental Analysis
SLNO's financial performance has been challenging. The company reported a negative EBITDA of $66.53 million and a loss per share of $1.83 as of the latest quarter ending June 30, 2024. Its revenue and gross profit for the trailing twelve months stand at zero. Consequently, the company has yet to generate positive earnings or revenue, resulting in a trailing price-to-earnings ratio of "None."
Technical Analysis
Technically, SLNO's stock price has been volatile over the past year, fluctuating between a 52-week high of $54.09 and a 52-week low of $3.96. The 50-day moving average currently stands at $47.68, while the 200-day moving average is at $43.77. The stock's beta of -1.445 indicates a negative correlation with the broader market.
Short Term Outlook
In the short term, SLNO's stock price may face headwinds due to its lack of revenue and negative earnings. The company's ability to secure funding and advance its clinical pipeline will be crucial for its near-term performance.
Long Term Outlook
The long-term outlook for SLNO is dependent on the success of its clinical trials and the commercialization of its therapies. If the company can successfully bring its treatments to market, it has the potential to address significant unmet needs in rare diseases and generate substantial revenue. However, the competitive nature of the biopharmaceutical industry and the risks associated with drug development pose challenges to its long-term growth.
Analyst Recommendations
Analysts have a positive outlook on SLNO, with four strong buy ratings and three buy ratings. The average analyst target price is $70.25, implying a potential upside of approximately 33% from the current stock price.
