Soleno Therapeutics (SLNO) Stock Forecast & Price Target

Soleno Therapeutics Inc. has a positive investment outlook due to its innovative product candidate, DCCR, which has shown the potential to activate KATP channels across multiple critical tissues, indicating a strong therapeutic profile for rare diseases. The company is positioned favorably within the biopharmaceutical market, as reflected in market sentiment suggesting an anticipated stock performance outpacing peers in the second half of 2025. Additionally, the detailed discounted cash flow analysis incorporates a conservative weighted average cost of capital at 8.7%, suggesting that the company's financial projections may provide a solid foundation for future growth despite the indicated terminal growth rate of -80% post-patent.

Soleno Therapeutics has witnessed a 20% decline in its stock price over the past month, reflecting concerns about its market performance and potential for future growth. Key issues identified include significant payer restrictions, which have been highlighted as the primary obstacle to prescription uptake, as well as challenges related to the management of larger patient populations that may affect physician-patient interactions. Despite high patient compliance and satisfaction with the treatment, the ongoing backlog in patient visits and the competition from generic alternatives are likely to contribute to a continued negative outlook for the company's financial performance.