Morgan Stanley Backs Tenaya Therapeutics (TNYA) as SMID-Cap Biotech Primed to Outperform in 2026

Tenaya Therapeutics Inc. (NASDAQ:TNYA) is one of the overlooked growth stocks to buy. On January 8, Morgan Stanley lowered the firm’s price target on Tenaya Therapeutics to $2 from $5 and kept an Overweight rating on the shares. In a sector outlook note, the firm predicted that the US small-to-mid cap biotech stocks will continue to outperform in 2026. This bullish view is driven by commercial-stage companies transitioning from capital consumers to producers and a looming patent cliff that is currently threatening the revenue of large-cap biopharma.

Earlier on December 16, Canaccord Genuity recently lowered its price target for Tenaya Therapeutics to $4 from $6, while maintaining a Buy rating. This adjustment reflected the impact of a recent $60 million capital raise (completed in December 2025), which caused some shareholder dilution but extended the company’s cash runway into mid-2027.

On December 12, H.C. Wainwright also lowered its price target for Tenaya Therapeutics Inc. (NASDAQ:TNYA) to $3 from $5 while maintaining a Buy rating. This reduction was also primarily due to the share dilution resulting from the company’s $60 million public offering. This capital raise, priced at $1.20 per unit, was essential for extending Tenaya’s cash runway through mid-2027, as mentioned previously, and also for supporting its key gene therapy programs.

Tenaya Therapeutics Inc. (NASDAQ:TNYA) is a clinical-stage biotech company that discovers, develops, and delivers therapies for heart disease in the US.

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Disclosure: None. This article is originally published at Insider Monkey.