PolyPid: Roth Capital keeps Buy rating, lowers PT to $9 from $12.

PolyPid: Roth Capital keeps Buy rating, lowers PT to $9 from $12.

Title: Roth Capital Keeps Buy Rating, Lowers Price Target for PolyPid

Roth Capital Partners has maintained its Buy rating for PolyPid Ltd. (NASDAQ: PYPD) but has lowered its price target from $12 to $9. The investment firm’s decision comes after PolyPid announced successful Phase 3 trial results for its surgical infection prevention technology, D-PLEX₁₀₀, which demonstrated a 58% reduction in surgical site infections [2].

The Phase 3 SHIELD II trial results were a significant milestone for PolyPid, as the technology successfully met its primary endpoint and all key secondary endpoints. The trial showed a reduction in infection rates from 9.5% with standard care to just 3.8% when D-PLEX₁₀₀ was added, particularly notable in patients with large surgical incisions [2].

Despite the positive clinical results, PolyPid currently trades at around $3.53 per share, representing a market cap of approximately $36 million. This valuation is significantly lower than comparable companies in the surgical and pain management sectors, many of which command valuations in the hundreds of millions to over $1 billion [2].

Roth Capital’s decision to lower the price target reflects the company’s cautious approach to PolyPid’s valuation, despite the promising clinical results and the substantial market opportunity. The firm cited the need for further commercial execution and partnership value creation as key factors in its revised target [2].

PolyPid’s extended cash runway, thanks to the recent $26.7 million funding secured through warrant exercises, provides the company with the flexibility to pursue its regulatory and commercial goals. The company expects to file its New Drug Application in early 2026, leveraging Fast Track and Breakthrough Therapy designations already granted by the FDA [2].

Wall Street analysts remain bullish on PolyPid, with several firms maintaining Buy ratings and price targets ranging from $10 to $13. The consensus among Wall Street professionals points to significant upside potential from current levels [2].

In conclusion, Roth Capital’s decision to maintain its Buy rating while lowering the price target reflects a balanced view of PolyPid’s potential. The company’s transformative clinical results, strong regulatory pathway, and substantial market opportunity make it an intriguing opportunity for investors seeking undervalued assets with clear paths to value creation.

References
[1] https://www.gurufocus.com/news/2929511/roth-capital-increases-price-target-for-silicon-motion-simo-to-90-simo-stock-news
[2] https://www.nasdaq.com/press-release/fresh-funding-and-strong-phase-3-data-polypid-advances-towards-fda-approval-2025-06