Goldman Sachs Thinks Mid-Cap Biotech MoonLake Could Soar Over 80%: Is Retail Watching Closely?
Oppenheimer has included MoonLake among its top biotech picks for 2025, alongside Capricor, Gilead, Kymera, Praxis, and Prothena.
FollowMoonLake Immunotherapeutics, a clinical-stage biotech firm valued at $2.6 billion, is generating excitement with its experimental treatment for hidradenitis suppurativa (HS), a chronic and painful skin condition.
On Friday, Goldman Sachs upgraded the stock to a 'Buy' from 'Neutral,' with analyst Richard Law raising the price target from $62 to $82 — an 85% upside from current levels, CNBC reported.
While MoonLake is gaining traction among institutional investors, it remains underfollowed on Stocktwits, with fewer than 600 watchers.
Over the past year, retail interest has been budding, with a 12% increase in followers, even as the stock has fallen 26%.
Law reportedly believes MoonLake's experimental nanobody treatment, sonelokimab (SLK), holds transformative potential.
SLK demonstrated impressive efficacy in phase 2 trials, leading to optimism about its success in phase 3.
Additionally, SLK's inclusion of AbbVie's Skyrizi — currently the standard of care for psoriatic arthritis (PsA) — as a reference treatment offers a key differentiator, according to the analyst.
Law suggests that while this adds some risk, the potential to position SLK as superior in a competitive market far outweighs the drawbacks.
Goldman Sachs isn't alone in its optimism. Oppenheimer included MoonLake among its top biotech picks for 2025, alongside Capricor, Gilead, Kymera, Praxis, and Prothena.
The brokerage sees biotech equities as undervalued relative to other sectors, with strong catalysts like lower interest rates, robust M&A prospects, and transformative data releases creating a favorable backdrop this year.
MoonLake ended the third quarter (Q3) of 2024 with $493.9 million in cash, cash equivalents, and marketable securities, which the company said provides a runway through 2026.
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