Lexeo Therapeutics Inc. (NASDAQ:LXEO) is among the top stocks under $10 that analysts believe could triple in value, driven by progress in its gene therapy pipeline. The company recently finalized the pivotal trial protocol for its SUNRISE-FA 2 study and the corresponding statistical analysis plan, which will support a Biologics License Application to the U.S. FDA for its lead candidate, LX2006.
Gene Therapy Milestone
Lexeo's Chief Medical Officer, Narinder Bhalla, called the completion of the SUNRISE-FA 2 study design a major step forward. The trial will evaluate LX2006 in patients with Friedreich's ataxia cardiomyopathy, a condition with significant unmet need. Bhalla emphasized that patients remain at the center of their efforts, and the company aims to enroll the first patient by the end of the month. LX2006 is an AAVrh10-based gene therapy designed to address the cardiac manifestations of Friedreich's ataxia.
Analyst Outlook and Price Target
Despite the positive clinical progress, JPMorgan lowered its price target for LXEO from $12 to $9 on June 25, citing an updated financial model. The new target still implies a potential upside of over 92% from current levels. The firm maintained an Overweight rating on the stock, indicating continued confidence in Lexeo's prospects. Lexeo is a clinical-stage biotechnology company focused on genetic medicines for rare diseases, including LX2006 and LX2020, another gene therapy candidate targeting heart muscle disorders.
While LXEO presents a high-risk, high-reward opportunity, some investors may find more promising AI stocks with even greater upside potential. However, for those focused on gene therapy and rare disease treatments, Lexeo's recent regulatory milestones make it a stock to watch.