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Investing.com - Akero Therapeutics (NASDAQ:AKRO), a $4.1 billion market cap biotech company with notably strong financials including more cash than debt, is in a stronger competitive position following Novo Nordisk (NYSE:NVO)’s decision to discontinue development of its MASH treatment zalfermin, according to Morgan Stanley (NYSE:MS). InvestingPro data shows the stock has doubled in value over the past year, with three analysts recently revising earnings estimates upward.
Morgan Stanley has reiterated an Overweight rating on Akero with an $84.00 price target, aligning with the broader analyst consensus that remains highly bullish. The firm noted that Novo Nordisk announced the discontinuation of zalfermin, an FGF21 analog, after its Phase 2 trial in metabolic dysfunction-associated steatohepatitis (MASH) failed to meet its primary endpoint. With analyst targets ranging from $60 to $109, InvestingPro subscribers can access 8 additional key insights about Akero’s market position and financial health.
Novo Nordisk reported that zalfermin’s efficacy was not meaningfully improved compared to semaglutide (GLP-1) in the trial, which enrolled 698 patients with F2-F4 MASH across four different dose levels with matching placebo, both with and without semaglutide.
Morgan Stanley believes Akero’s efruxifermin (EFX), also an FGF21 analog, is well-positioned with best-in-class potential in both F2/F3 MASH and the more difficult to treat F4 MASH. The firm highlighted that EFX is the most advanced FGF21 analog in development, with its Phase 3 SYNCHRONY program ongoing.
Readouts from Akero’s SYNCHRONY Real World study in F1-4 non-invasively diagnosed MASH are expected in the first half of 2026, while results from the Histology study in F2/3 MASH are anticipated in the first half of 2027. The Outcomes study for F4 MASH has been enrolling patients since the third quarter of 2024. With the stock’s negative beta of -0.28 indicating movement contrary to broader market trends, investors can track Akero’s progress through comprehensive financial metrics and real-time updates available on InvestingPro.
In other recent news, Akero Therapeutics has been the focus of several analyst updates. TD Cowen initiated coverage on the company with a Buy rating and a $76 price target, emphasizing the potential commercial success of its FGF21 analog, efruxifermin (EFX), in treating metabolic dysfunction-associated steatohepatitis (MASH). Jefferies maintained a Buy rating with a $75 price target, highlighting positive results from Akero’s placebo-controlled study on F4 cirrhosis presented at the European Association for the Study of the Liver (EASL). The data were also published in The New England Journal of Medicine, suggesting a significant market opportunity for Akero.
Citi analysts adjusted their price target for Akero to $78 from $80 while maintaining a Buy rating. This adjustment was based on the company’s recent clinical data from the Phase 2b SYMMETRY trial, which demonstrated positive effects on liver fibrosis metrics. Morgan Stanley also revised its price target from $90 to $84, keeping an Overweight rating, citing an updated financial model and a shift in the projected timeline for the U.S. launch of EFX treatments for F4 patients. These developments have been driven by Akero’s recent first-quarter financials for 2025 and ongoing market trends.
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