Morgan Stanley Names Rocket Pharmaceuticals (RCKT) as Key Beneficiary of 2026 Biotech Sector Recovery

Company Overview - Rocket Pharmaceuticals Inc. operates as a late-stage biotechnology company focused on developing gene therapies for rare and devastating diseases in the US [4] Recent Developments - In Q3 2025, Rocket Pharmaceuticals achieved significant regulatory and clinical milestones, including the FDA lifting the clinical hold on its Phase 2 pivotal trial of RP-A501 for Danon disease, with dosing scheduled to resume in H1 2026 [2] - The FDA set a PDUFA action date of March 28 for KRESLADI, a gene therapy for severe LAD-I, marking a critical step toward the company's first potential commercial launch [2] Strategic Focus - The company is advancing its cardiovascular portfolio with RP-A601 and RP-A701 while remaining focused on its hematology programs and the potential receipt of a Rare Pediatric Disease Priority Review Voucher upon the anticipated approval of KRESLADI [3] Market Position - Analysts consider Rocket Pharmaceuticals one of the best single-digit stocks to buy, although Morgan Stanley recently lowered its price target from $7 to $5 while maintaining an Equal Weight rating [1] - The firm expects continued outperformance for US small-to-mid cap biotech as commercial companies shift from consuming capital to producing it, while large-cap biopharma faces an approaching patent cliff [1]