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Investing.com - TD Cowen initiated coverage on Akero Therapeutics (NASDAQ:AKRO) with a Buy rating and a $76.00 price target on Monday. The company, currently valued at $3.91 billion, has seen its stock surge over 92% in the past year.
The research firm highlighted the company’s FGF21 analog efruxifermin (EFX), noting its differentiated clinical profile supported by strong efficacy data that could drive commercial success in F3 and F4 MASH (metabolic dysfunction-associated steatohepatitis). InvestingPro data shows the company maintains a strong financial position with more cash than debt, while its stock typically moves independently of broader market trends with a beta of -0.15.
EFX is currently in Phase 3 trials with what TD Cowen describes as high probabilities of success, with topline data for the Phase 3 SYNCHRONY F2/F3 MASH trial expected in the first half of 2027.
TD Cowen projects peak U.S. sales of $2.85 billion for F3 MASH and $4.85 billion for F4 MASH applications of the drug.
The $76 price target represents significant upside potential from Akero’s current trading levels, based on the firm’s assessment of the commercial opportunity in the MASH treatment landscape.
In other recent news, Akero Therapeutics has been at the forefront of several developments. The company released results from its Phase 2b SYMMETRY trial, which were published in the New England Journal of Medicine, indicating that its drug efruxifermin (EFX) may improve liver fibrosis in patients with cirrhosis caused by metabolic dysfunction-associated steatohepatitis (MASH). The trial included 182 patients and demonstrated positive outcomes over a 96-week period. Additionally, Akero presented compelling data at the European Association for the Study of the Liver conference, which highlighted the potential of its FGF21 therapy.
In terms of analyst activity, TD Cowen initiated coverage on Akero with a Buy rating, citing the strong efficacy data of its FGF21 analog efruxifermin. Jefferies also maintained a Buy rating, emphasizing the robust data from a placebo-controlled study on F4 cirrhosis. Citi and Morgan Stanley (NYSE:MS) have adjusted their price targets for Akero, with Citi reducing its target to $78 while maintaining a Buy rating, and Morgan Stanley lowering its target to $84 but keeping an Overweight rating. These revisions reflect recent analyses of Akero’s financials and clinical data, as well as market trends.
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