Morgan Stanley adjusted its outlook on Tenaya Therapeutics Inc. on January 8, reducing the price target to $2 from $5. The firm maintained an Overweight rating on the shares.
In a sector note, Morgan Stanley stated that U.S. small-to-mid cap biotech stocks are expected to continue outperforming in 2026. The firm cited commercial-stage companies shifting from capital consumers to producers and a looming patent cliff affecting large-cap biopharma revenue as reasons for this view.
Earlier, on December 16, Canaccord Genuity lowered its price target for Tenaya Therapeutics to $4 from $6. The firm kept a Buy rating. This change reflected the impact of a $60 million capital raise completed in December 2025, which extended the company's cash runway into mid-2027 but caused some shareholder dilution.
On December 12, H.C. Wainwright also reduced its price target for Tenaya Therapeutics to $3 from $5, while maintaining a Buy rating. H.C. Wainwright said the reduction was primarily due to share dilution from the company's $60 million public offering. The offering was priced at $1.20 per unit.
Tenaya Therapeutics is a clinical-stage biotechnology company based in the United States. The company focuses on discovering, developing, and delivering therapies for heart disease.