Scotiabank Lowers Price Target for Geron Amid Rytelo Sales Concerns

Published 4 hours agoGERN

Scotiabank Lowers Price Target for Geron Amid Rytelo Sales Concerns

Scotiabank recently downgraded its price target for Geron Corporation, reflecting concerns over the sales performance of the company's blood cancer drug, Rytelo. The price target was reduced from $6.00 to $4.00, while maintaining a 'Sector Outperform' rating. This adjustment comes in the wake of Geron's fourth-quarter 2024 results, which met expectations but showed a slower-than-hoped launch momentum for Rytelo in treating lower-risk myelodysplastic syndromes (LR-MDS).

This development underscores the challenges Geron faces in the competitive oncology market. The company's current stock price stands at $1.275, representing a slight decrease from its previous close. As reported by Scotiabank, the market remains vigilant following the drug's performance indicators, which play a crucial role in influencing investor sentiment.

Despite the lowered price target, Scotiabank's retention of a 'Sector Outperform' rating signals sustained confidence in Geron's long-term potential. The bank's outlook suggests that while immediate sales trajectories pose worries, the broader investment case for Geron remains positive. This indicates that investors might still find value in Geron's strategic initiatives and future growth prospects.

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