BMO Capital Keeps Outperform Rating, PT Down to $45 for Scholar Rock Holding

BMO Capital Keeps Outperform Rating, PT Down to $45 for Scholar Rock Holding

BMO Capital has lowered its price target on Scholar Rock Holding (NASDAQ:SRRK) to $45.00, down from $57.00, while maintaining an Outperform rating on the stock. Despite the price target reduction, SRRK has demonstrated remarkable strength with a 319% return over the past year. The stock currently trades at $34.62, with analyst targets ranging from $46 to $57 [1].

The price target reduction comes as BMO Capital analyst Etzer Darout cited ongoing problems at Novo’s Catalent (NYSE:CTLT) facilities that could potentially impact the PDUFA date for apitegromab, Scholar Rock’s investigational drug. Apitegromab is produced within Novo’s Catalent facilities, which were previously flagged for FDA observations during a pre-approval site visit, creating uncertainty around the drug’s regulatory timeline. Last week, Regeneron (NASDAQ:REGN) received a Complete Response Letter (CRL) for odronextamab approval and experienced a delayed response for the label extension of Eylea HD Q4W dosing, suggesting broader regulatory challenges related to Novo Catalent facilities [1].

While Scholar Rock’s management has expressed confidence in apitegromab’s approval, BMO Capital indicates that delays are possible "given late CMC issue identification and proximity to PDUFA," leading to the reduced price target. Raymond (NSE:RYMD) James has maintained its Strong Buy rating for Scholar Rock, with a price target of $53.00. These developments highlight key areas of interest for investors monitoring Scholar Rock’s progress [1].

In other recent news, Scholar Rock reported its second-quarter 2025 earnings, which showed an EPS of -0.98. This result was below the expected EPS of -0.66, representing a 48.48% negative surprise. The earnings miss has raised concerns among investors regarding the company’s financial performance [1].

Scholar Rock Holding Corp has released its Form 10-Q report for the third quarter, reflecting significant progress in its research and development pipeline and strategic initiatives. The company reported a net loss of $110.0 million, an increase of 88.1% compared to the same period last year. The report also highlighted the company's advancements in apitegromab development, SRK-439 program expansion, and SRK-181 clinical trial completion. If approved, Scholar Rock plans to launch apitegromab commercially in the U.S. in the fourth quarter of 2025, with a European launch anticipated in 2026 [2].

References:
[1] https://ca.investing.com/news/analyst-ratings/bmo-capital-lowers-scholar-rock-stock-price-target-to-45-on-novo-catalent-concerns-93CH-4143661
[2] https://www.tradingview.com/news/tradingview:a8728d3fac75e:0-scholar-rock-holding-corp-sec-10-q-report/