Stock of the Day

July 29, 2021

Scholar Rock (SRRK)

$56.80
-$1.00 (-1.7%)
Market Cap: $7.04B

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 mixed analyst signals. The stock has been trading higher, supported by bullish analyst ratings and a $65 price target, although downward earnings revisions highlight continued near-term losses and execution risk.

  • Wedbush rated Scholar Rock “Outperform,” adding a constructive Wall Street view to the stock and potentially supporting investor confidence. Scholar Rock Earns Outperform Rating from Wedbush
  • HC Wainwright maintained a “Buy” rating and $65 price target for Scholar Rock. The target remains above the stock’s recent trading level, suggesting potential upside if the company meets its development and commercialization objectives.
  • Reported short interest was zero shares as of August 11, unchanged from the prior report. The resulting zero-day days-to-cover figure provides no evidence of meaningful short-selling pressure, but the data may reflect a reporting or data-quality issue.
  • HC Wainwright lowered its EPS forecasts across multiple periods: Q3 2026 to $(0.84) from $(0.82), Q4 2026 to $(0.78) from $(0.75), FY2026 to $(3.29) from $(3.21), FY2027 to $(2.45) from $(2.32), FY2028 to $(0.86) from $(0.77), FY2029 to $0.35 from $0.40, and FY2030 to $1.40 from $1.43. These revisions indicate expectations for slower earnings improvement, despite the continued Buy rating.

Overall, the favorable ratings from Wedbush and HC Wainwright appear to be the primary positive catalysts for SRRK. However, the reduced earnings outlook and projected losses through 2028 could limit gains and keep the stock sensitive to clinical, regulatory, and commercialization updates.