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Investing.com - RBC Capital lowered its price target on Aardvark Therapeutics Inc (NASDAQ:AARD) to $19.00 from $20.00 on Thursday, while maintaining an Outperform rating on the stock. Currently trading at $11.45, the stock sits well below the consensus analyst low target of $19. InvestingPro data shows the company maintains a GOOD financial health score of 2.6.
The firm cited timeline delays in the company’s clinical plans, most notably the postponement of the Phase III trial for its ’101 drug in Prader-Willi syndrome (PWS) to third quarter 2026, versus the previously expected early 2026 start date.
RBC Capital noted that the incorporation of pediatric patients in the upcoming PWS study may help increase the potential effect size and probability of success, while also potentially accelerating utilization in a broader market.
Despite acknowledging limitations in interpreting Aardvark’s pilot PWS clinical data, the research firm believes there are positive signals, estimating a 30% probability of success for the treatment.
The firm also highlighted VykatXR’s strong initial market uptake as evidence of significant market opportunity for Aardvark’s drug, which could differentiate itself on mechanism and safety, with additional optionality in hyperphagia/obesity (HO) and obesity treatment areas.
In other recent news, Aardvark Therapeutics announced promising results from a preclinical study of its investigational drug ARD-201, which demonstrated a 19% reduction in body weight in diet-induced obese mice after 30 days of treatment. The study also indicated that ARD-201 could attenuate weight regain after discontinuation of tirzepatide, a GLP-1 receptor agonist. In addition to this, Aardvark Therapeutics has made significant changes to its leadership team as it progresses with its Phase 3 HERO study of ARD-101, targeting hyperphagia in Prader-Willi Syndrome. New appointees include Timothy Kieffer, Ph.D., as Chief Scientific Officer, and Danny Villeneuve as Chief Commercial Officer, among others. Furthermore, Cantor Fitzgerald has reiterated its Overweight rating on Aardvark Therapeutics, maintaining a $50.00 price target, suggesting the current market valuation underestimates the company’s potential success in its Phase 3 study. Meanwhile, H.C. Wainwright has initiated coverage on Aardvark Therapeutics with a Buy rating and a $40.00 price target, emphasizing the company’s innovative approach to treating obesity and hyperphagic conditions. These developments reflect Aardvark’s ongoing efforts and strategic planning in its research and development initiatives.
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