Assembly Biosciences stock price target raised by Guggenheim to $39 on strong trial data

Investing.com - Guggenheim raised its price target on Assembly Biosciences (NASDAQ:ASMB) to $39.00 from $31.00 on Monday, while maintaining a Buy rating on the stock. The company, currently trading at $23.82 with a market cap of $371 million, has seen impressive momentum with a 50.92% gain year-to-date. According to InvestingPro data, analyst consensus remains strongly bullish with price targets ranging from $29 to $50.

The price target increase follows impressive interim data from Assembly’s Phase 1b study of ABI-5366, a potential once-weekly oral treatment for recurrent genital herpes. The 350 mg weekly dose cohort demonstrated a 94% reduction in viral shedding rate, exceeding competitor reductions of 80-85%.

The same cohort also showed a significant 94% reduction in lesion rate, which is a key clinical and regulatory endpoint. Blinded safety data indicated a clean profile for the treatment, according to Guggenheim.

Assembly Biosciences continues to enroll patients for both ABI-5366 (including a once-monthly regimen) and ABI-1179, with studies on track for additional updates this fall and preparations underway for Phase 2 trials to begin in mid-2026.

Guggenheim increased its probability of success for the treatment to 75% from 65%, raised its assumed monthly price to $500 from $300, and lowered its discount rate to 12% from 15%, citing reduced funding risk following Assembly’s recent $175 million capital raise.

In other recent news, Assembly Biosciences reported positive outcomes from its clinical trials. The company announced interim results from a Phase 1b study of its herpes simplex virus treatment, ABI-5366, showing a 94% reduction in HSV-2 shedding rate and genital lesions, surpassing its target reduction. Additionally, Assembly Biosciences revealed promising topline results from a Phase 1b study of its hepatitis B virus drug, ABI-4334, with significant reductions in HBV DNA and RNA levels in trial participants. To support its viral disease therapeutic development programs, Assembly Biosciences successfully priced a $130 million offering, involving approximately 6.6 million shares and warrants. H.C. Wainwright assumed coverage of the company with a Buy rating, highlighting the potential of its antiviral pipeline. Furthermore, Assembly Biosciences announced key changes following its Annual Meeting of Stockholders, including amendments to its stock incentive and employee stock purchase plans to increase the number of shares reserved for issuance. The company also appointed a new Chief Financial Officer as part of its strategic initiatives.

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