BofA Securities on Wednesday revised down its price target for LENZ Therapeutics Inc (NASDAQ:LENZ) to $35.00 from $52.00, while retaining a Buy rating on the shares. The new target still implies substantial upside relative to LENZ’s most recent quote of $15.53, which, per InvestingPro data, is roughly 17% lower than a week earlier.
The change follows LENZ’s release of preliminary fourth-quarter net product revenue for its presbyopia treatment Vizz, which the company reported at $1.6 million. That figure was above the consensus estimate of $1.0 million but, according to BofA, points to a softer-than-expected ramp in market adoption.
In response, BofA lowered its long-term sales forecast for Vizz. The firm now pegs peak annual sales at $770 million, down from a prior estimate of $840 million - a 10% reduction. Additionally, BofA trimmed its Vizz revenue projections for 2027 through 2032 by an average of 25%.
Despite the downward revisions, the analyst flagged positive early signs of demand. LENZ reported more than 20,000 prescriptions for Vizz in the partial fourth quarter, which BofA described as encouraging given the period included heavy holiday weeks. Still, the firm said its earlier assumptions for a 2026 launch were "overly aggressive."
BofA expressed continued confidence in Vizz’s commercial potential, highlighting the company’s recently initiated direct-to-consumer advertising campaign as a possible catalyst for faster adoption. The firm characterized Vizz as "the only effective eye drop that can deliver a full day benefit for presbyopia symptoms."
Financial metrics cited in InvestingPro data underscore LENZ’s balance sheet strength. The company shows a current ratio of 12.69 and reportedly holds more cash than debt. InvestingPro’s Fair Value assessment suggests LENZ may be slightly undervalued at current prices, and analysts collectively maintain a Strong Buy consensus for the stock.
Investors have weighed several other recent developments. LENZ’s third-quarter 2025 earnings disclosed a marked increase in operating expenses and a net loss per share; those results produced a negative investor reaction despite the commercial roll-out of the new eye drop product noted in filings as VIZ. Separately, a retinal tear case linked to LENZ’s VIZZ eye drop was recorded in the U.S. Food and Drug Administration’s adverse event reporting system, prompting concerns about potential safety issues.
Market watchers also noted that TD Cowen had highlighted how comparable safety concerns previously affected the launch of another product, Vuity. Taken together, the recent earnings print, the safety report, and the tempered sales outlook have contributed to elevated scrutiny and a more cautious stance among investors toward LENZ Therapeutics.
Key points
- BofA lowers LENZ price target to $35 from $52 but keeps a Buy rating; new target still implies significant upside from the current share price.
- Preliminary Q4 net product revenue for Vizz was $1.6 million, above consensus of $1.0 million, yet signaled a slower market ramp.
- BofA trimmed peak Vizz sales to $770 million and cut 2027-2032 forecasts by about 25% on average; early prescription volume and a new DTC ad push remain points of optimism.
Risks and uncertainties
- Slower-than-expected commercial uptake for Vizz could limit near-term revenue growth - impact centered on healthcare, biotechnology, and specialty ophthalmic markets.
- Reported adverse event - a retinal tear linked to VIZZ in the FDA reporting system - raises safety scrutiny that could affect regulatory perception and patient adoption in the eye-care sector.
- Rising operating expenses and recent net losses reported in Q3 2025 increase financial pressure and investor caution, influencing market and capital-raising dynamics for the company and peers.