Biohaven Ltd. (BHVN, Financial) has decided to retract its application for the use of troriluzole in treating spinocerebellar ataxia (SCA) from the European Medicines Agency’s Committee for Medicinal Products for Human Use (CHMP). This strategic move points to the company's increasing reliance on U.S. regulatory approval to boost investor confidence and support its stock recovery.
Investment firm RBC Capital emphasizes that the European regulator has been particularly stringent on rare disease approvals recently, potentially influencing Biohaven's decision. Despite this setback, RBC Capital maintains an optimistic outlook for Biohaven, indicating that the company's shares remain undervalued due to the promising prospects of troriluzole gaining approval in the U.S. and the potential within Biohaven's broader drug development portfolio. The analysts have reaffirmed their Outperform rating for the stock, setting a price target of $61.
The withdrawal has led to a bearish sentiment among investors, primarily due to the critical role that U.S. approval plays in Biohaven's growth outlook. RBC Capital acknowledges that while the recent news justifies a potential stock price dip of around 6%-7%, it believes that Biohaven's future opportunities in the American market offer substantial upside potential that the current stock price does not yet reflect.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Biohaven Ltd (BHVN, Financial) is $60.46 with a high estimate of $76.00 and a low estimate of $39.00. The average target implies an upside of 197.99% from the current price of $20.29. More detailed estimate data can be found on the Biohaven Ltd (BHVN) Forecast page.
Based on the consensus recommendation from 16 brokerage firms, Biohaven Ltd's (BHVN, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
