Cautious Hold Rating on Biohaven Ltd. Amidst R&D Setbacks and Competitive Challenges
UBS analyst Ashwani Verma maintains a Hold rating on Biohaven Ltd. with a price target of $11.00 due to R&D setbacks and competitive challenges. Biohaven's Kv7 program lags behind Xenon in focal epilepsy, affecting its competitive position. Despite a significant stock decline, mixed upcoming catalysts and limited pipeline upside within 12-18 months justify a cautious stance.
In a report released today, Ashwani Verma from UBS maintained a Hold rating on Biohaven Ltd., with a price target of $11.00.
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Ashwani Verma has given his Hold rating due to a combination of factors impacting Biohaven Ltd.’s stock. The company has experienced several setbacks in its research and development efforts, which have diminished confidence in the potential of its remaining pipeline programs. Specifically, Biohaven’s Kv7 program is lagging behind its competitor, Xenon, by over two years in the primary indication of focal epilepsy, which raises concerns about its competitive positioning.
Additionally, while the stock has seen a significant decline in value over the past year, potentially making it an attractive buy, the upcoming catalysts are mixed, and the stock appears fairly valued at its current level. The limited upside potential from the rest of the pipeline within the next 12 to 18 months further supports a cautious stance. As a result, the price target has been adjusted to reflect these challenges, leading to a Hold rating.
