Taysha Gene Therapies (TSHA) valuation after REVEAL Rett trial plans and insider sale drive fresh investor focus

Taysha Gene Therapies (TSHA) is back on traders radar after two very different signals hit at once: finalized REVEAL trial plans for its Rett syndrome gene therapy and a sizable insider share sale.

See our latest analysis for Taysha Gene Therapies.

Those cross currents help explain why, even with a recent 10.59% 1 day share price return pushing the stock to 4.49 dollars, Taysha still shows a powerful year to date share price return of 142.70 percent alongside an 88.66 percent 1 year total shareholder return. This suggests momentum is building but still comes with biotech style risk.

If this kind of asymmetric setup appeals to you, it could be worth exploring other early stage opportunities across healthcare stocks that might be flying under your radar.

With the stock still trading at a steep discount to analyst targets despite blockbuster style expectations around its Rett program, investors face a key question: is Taysha undervalued here or already pricing in its next leg of growth?

Most Popular Narrative: 57.4% Undervalued

With Taysha Gene Therapies last close at 4.49 dollars against a narrative fair value of about 10.54 dollars, the valuation hinges heavily on the Rett program’s trajectory and aggressive earnings assumptions.

The analysts have a consensus price target of $6.55 for Taysha Gene Therapies based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $8.0, and the most bearish reporting a price target of just $5.0.

Read the complete narrative.

Curious how a loss making biotech earns such a rich future earnings multiple and soaring revenue outlook, yet still screens undervalued? The narrative stitches together rapid top line expansion, margin transformation, and a lofty profit multiple that would not look out of place in market leading growth stories. Want to see exactly which assumptions turn today’s price into that much higher fair value?

Result: Fair Value of $10.54 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, setbacks in TSHA-102’s pivotal trials or tougher than expected FDA requirements could quickly erode today’s optimism and derail those aggressive growth assumptions.

Find out about the key risks to this Taysha Gene Therapies narrative.

Another View: Multiples Tell a Tougher Story

Look past the narrative fair value and the picture gets murkier. On a simple price to book basis, Taysha trades at about 5.6 times versus roughly 2.5 times for the wider US biotech group and around 10.5 times for peers, suggesting rich expectations baked into an unprofitable story.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Taysha Gene Therapies Narrative

If you see the story differently or want to dig into the numbers yourself, you can shape a fresh perspective in minutes: Do it your way.

A great starting point for your Taysha Gene Therapies research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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