Morgan Stanley Reduces PT on Tenaya Therapeutics (TNYA), Keeps Constructive Stance on U.S. Small- to Mid-Cap Biotech

Faheem Tahir

2 min read

Tenaya Therapeutics, Inc. (NASDAQ:TNYA) is one of the stocks under $1 that will explode.

Morgan Stanley Reduces PT on Tenaya Therapeutics (TNYA), Keeps Constructive Stance on U.S. Small- to Mid-Cap Biotech — Morgan Stanley Reduces PT on Tenaya Therapeutics (TNYA), Keeps Constructive Stance on U.S. Small- to Mid-Cap Biotech

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On January 8, 2026, TheFly reported that Morgan Stanley reduced its price target on Tenaya Therapeutics, Inc. (NASDAQ:TNYA) from $5 to $2, while reiterating an ‘Overweight’ rating. The firm keeps its constructive stance on U.S. small- to mid-cap biotech in 2026, as it expects select companies to transition from capital consumers to capital producers. Meanwhile, large-cap biopharma is projected to face headwinds amid an approaching patent cliff.

Meanwhile, Morgan Stanley’s cautious outlook was preceded by encouraging clinical momentum reported earlier. On December 11, 2025, Tenaya Therapeutics, Inc. (NASDAQ:TNYA) released interim data from the RIDGE-1 Phase 1b/2 trial of TN-401, the company’s gene therapy for PKP2-associated ARVC. The therapy was well-tolerated among three patients dosed at 3E13 vg/kg, with no dose-limiting toxicities. Meanwhile, two patients reported increased PKP2 protein expression and clinically significant reductions in arrhythmia burden, including PVC declines of 46% and 89%. The company reported continued clinical progress, with enrollment at the higher 6E13 vg/kg dose marking completion, with no new treatment-related serious adverse events.

Tenaya Therapeutics, Inc. (NASDAQ:TNYA), a clinical-stage biopharma company, develops potentially curative therapies for cardiovascular disease. Its pipeline spans gene therapy and precision medicine programs targeting inherited and acquired heart conditions.

While we acknowledge the potential of TNYA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Disclosure: None.

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