Jefferies cuts EyePoint stock price target to $8 on trial miss

Jefferies has reduced its price target on EyePoint Inc.'s stock to $8.00 from its previous $30.00, maintaining a Buy rating for the company. The decision comes after mixed results from EyePoint's LUGANO trial for wet age-related macular degeneration. The stock's current price is $4.66 with a market capitalization of $403 million.

InvestingPro analysis suggests the stock is undervalued at a Fair Value of $12.75. Ten analysts have lowered their earnings expectations following the trial results. The primary endpoint of BCVA non-inferiority was not met due to nine patients in the DURAVYU arm experiencing vision loss from non-wAMD causes, including geographic atrophy, glaucoma, and retinal detachment.

The remaining trials showed promise, with injection burden reduction and 54% of patients supplement-free at week 56. No major safety concerns were reported. EyePoint's DURAVYU treatment failed to meet its primary endpoint in the trial, but an ad hoc analysis showed non-inferiority when excluding the affected patients. Other analysts, such as Stifel and Mizuho, maintain positive ratings on the stock.