Stock of the Day

July 29, 2021

Scholar Rock (SRRK)

$40.64
+$1.04 (+2.6%)
Market Cap: $4.82B

About Scholar Rock

Scholar Rock Holding Corporation, a biopharmaceutical company, focuses on the discovery, development, and delivery of medicines for the treatment of serious diseases in which signaling by protein growth factors plays a fundamental role. The company develops Apitegromab, an inhibitor of the activation of myostatin that is in Phase 3 clinical trial for the treatment of spinal muscular atrophy; and SRK-181, which has completed Phase 1 clinical trials for the treatment of cancers that are resistant to checkpoint inhibitor therapies, such as anti-PD-1 or anti-PD-L1 antibody therapies. It is developing a pipeline of product candidates to deliver novel therapies to treat a range of serious diseases, including neuromuscular disorders, cardiometabolic disorders, cancer, fibrosis, and iron-restricted anemia. Scholar Rock Holding Corporation was founded in 2012 and is headquartered in Cambridge, Massachusetts.

Today's Trend

Scholar Rock Holding Corporation (NASDAQ: SRRK) is receiving several favorable analyst signals following FDA approval for ISEMBYLD, although a small reduction in near-term earnings estimates may temper the reaction. At approximately $49.02, the stock remains below multiple analysts’ $70 price targets.

  • FDA approval for ISEMBYLD provides the most significant catalyst. The approval could support commercialization and expand the product’s potential market opportunity, giving investors a clearer path toward future revenue growth. Scholar Rock Holding Wins FDA Approval for ISEMBYLD
  • Analyst sentiment has strengthened. Jefferies upgraded Scholar Rock to “strong buy,” while Piper Sandler initiated or reiterated a “buy” recommendation. Wedbush also reaffirmed its “outperform” rating. These actions indicate growing confidence in ISEMBYLD and the company’s longer-term outlook. Jefferies Upgrades Scholar Rock Scholar Rock Receives a Buy from Piper Sandler Wedbush Reaffirms Outperform Rating
  • HC Wainwright raised its longer-term earnings forecasts. Estimates improved for fiscal 2027 through 2030, including a reduction in the projected 2027 loss, a narrower 2028 loss, and higher projected profits in 2029 and 2030. The firm maintained a $70 price target and “buy” rating, implying substantial potential upside from the current level.
  • Near-term profitability remains limited. HC Wainwright slightly reduced its fiscal 2026 EPS forecast to a $3.30 loss from a $3.29 loss. Scholar Rock is still expected to report losses in the current year, so investors must weigh near-term cash burn against the potential benefits of ISEMBYLD commercialization. Scholar Rock Fair Value Edges Higher

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