Bank of America Cuts Biohaven Price Target to $11, Downgrades to Underperform
BHVN•Bank of America lowered Biohaven’s rating to Underperform and cut its price target to $11 from $12, highlighting an unfavorable risk-reward ahead of Phase 3 epilepsy data. The firm also flagged cash runway concerns and said the company’s 2026 obesity catalyst offers limited de-risking potential.
1. BofA Downgrade and Price Target Cut
Bank of America shifted Biohaven’s rating from Neutral to Underperform and reduced its price target from $12 to $11, reflecting a reassessment of the company’s near-term risk-reward profile.
2. Phase 3 Epilepsy Data Risk
The firm cited an unfavorable risk-reward ahead of readout from the Phase 3 epilepsy trial for the Kv7 program, noting that results may not differentiate the drug from competitive therapies and could disappoint investors.
3. Cash Runway and Obesity Catalyst Outlook
Analysts also highlighted concerns over Biohaven’s cash runway, projecting potential funding gaps if upcoming catalysts underperform, and described the 2026 obesity-related catalyst as offering limited de-risking potential for the stock.
