BofA Downgrades Biohaven to Underperform, Price Target Cut to $11
BAC•Bank of America cut Biohaven’s rating to Underperform and lowered its price target from $12 to $11, implying 26% downside ahead of Phase 3 epilepsy data expected in H2 2026. Following the downgrade, short interest jumped to a record 16.7% and retail message volume surged 475%.
1. BofA Downgrade and Price Target Cut
Bank of America lowered Biohaven’s rating from Neutral to Underperform and cut the price target from $12 to $11, signaling expectations of about 26% downside. The move reflects a bearish view on the risk–reward profile ahead of Phase 3 epilepsy trial results due in the second half of 2026.
2. Record Short Interest and Retail Activity
Short interest in Biohaven stock reached a record high of 16.7%, up sharply from 3.5% in December 2022. At the same time, retail message volume spiked 475% as investor sentiment remained largely bullish despite the downgrade.
3. Progress in Graves’ Disease Phase 3 Trial
Biohaven enrolled the first patient in its Phase 3 trial of BHV-1300 for Graves’ disease, marking the first MoDE extracellular protein degrader study in this indication. Earlier Phase 1 data in nearly 200 patients showed rapid antibody reduction and thyroid hormone normalization with favorable tolerability.
