Taysha Gene Therapies (TSHA) Upgraded to Zacks Rank #2 (Buy)

Taysha Gene Therapies has been upgraded to a Zacks Rank #2 (Buy) due to rising earnings estimates, which could lead to a positive impact on its stock price. The upgrade reflects a strong correlation between earnings estimate revisions and near-term stock movements, and institutional investors' appreciation of the improving business trend.

Taysha Gene Therapies, Inc. (TSHA) has been upgraded to a Zacks Rank #2 (Buy) by Zacks Investment Research, reflecting a positive change in its earnings outlook. This upgrade is driven by an upward trend in earnings estimates, a key factor influencing stock prices.

The Zacks Rank system, which evaluates companies based on their changing earnings picture, has upgraded Taysha Gene Therapies to a Zacks Rank #2. This rank indicates a buy recommendation and places the company in the top 20% of Zacks-covered stocks in terms of estimate revisions [1]. The upgrade suggests that Taysha Gene Therapies' business is improving, which could lead to a positive impact on its stock price.

Analysts have been steadily raising their earnings estimates for Taysha Gene Therapies. Over the past three months, the Zacks Consensus Estimate for the company has increased by 7.9% [1]. This upward trend in earnings estimates is a powerful force driving near-term stock price movements, as institutional investors use these estimates to calculate the fair value of a company's shares [1].

The Zacks Rank system has a proven track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988 [1]. By tracking earnings estimate revisions, investors can make informed decisions and potentially benefit from market-beating returns.

In addition to the Zacks upgrade, BofA Securities initiated coverage on Taysha Gene Therapies with a Buy rating and a price target of $8.00 on July 11, 2025 [2]. The stock is currently trading at $2.55, with a 45% gain over the past six months. BofA Securities highlighted the potential of TSHA-102, a gene therapy under development for Rett syndrome, which could become the first approved disease-modifying treatment for the condition [2].

Several other analysts have also expressed optimism about Taysha Gene Therapies. Cantor Fitzgerald maintains an Overweight rating and a $13 price target on the company, while Canaccord Genuity has raised its price target to $11 from $9 [2]. These positive developments underscore the company's focus on advancing its gene therapy pipeline to address unmet medical needs.

The upgrade to a Zacks Rank #2 positions Taysha Gene Therapies as a solid candidate for producing market-beating returns in the near term. However, investors should carefully consider the company's fundamentals and the risks associated with its business before making any investment decisions.

References:
[1] https://finviz.com/news/105661/taysha-gene-therapies-tsha-moves-to-buy-rationale-behind-the-upgrade
[2] https://www.investing.com/news/analyst-ratings/bofa-securities-initiates-coverage-on-taysha-gene-therapies-stock-with-buy-rating-93CH-4131846