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Investing.com - Cantor Fitzgerald has reiterated an Overweight rating on aTyr Pharma (NASDAQ:ATYR), currently trading at $4.85, following meetings with the company’s management last week. The stock has seen a significant -23.7% decline over the past week, though it maintains a remarkable 156.8% return over the past year.
The meetings focused primarily on details of aTyr’s Phase 3 trial for Efzofitimod, an NRP2 modulator being tested for Pulmonary Sarcoidosis (PS). Topline results from this trial are expected in early-to-mid September, with detailed data to be presented at the European Respiratory Society conference later that month. InvestingPro data shows the company maintains strong liquidity with a current ratio of 7.79 and holds more cash than debt on its balance sheet.
Cantor Fitzgerald noted that aTyr appears to have executed the trial effectively. Management has observed separation in patient performance based on blinded data, suggesting either drug efficacy or that pulmonary sarcoidosis patients have historically received higher-than-necessary steroid treatments. According to InvestingPro, three analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in the company’s prospects. Subscribers can access 8 additional ProTips and comprehensive analysis in the Pro Research Report.
The research firm estimates significant potential share price movement based on trial outcomes. A positive Phase 3 result could drive the stock to $15-$20 per share, representing a 200-300% upside.
Conversely, Cantor Fitzgerald projects that unsuccessful trial results could push the stock below $1 per share, potentially resulting in an 80-90% downside from current levels.
In other recent news, aTyr Pharma has completed its pivotal Phase 3 EFZO-FIT study for efzofitimod, its lead therapeutic candidate for pulmonary sarcoidosis. H.C. Wainwright reaffirmed its Buy rating and a $35 price target on the company following this development. Meanwhile, Cantor Fitzgerald also maintained an Overweight rating on aTyr Pharma, with expectations for the Phase 3 trial results to be released in early-to-mid September. Leerink Partners expressed optimism about the upcoming trial readout, maintaining an Outperform rating and a $16 price target. Additionally, aTyr Pharma is set to join the Russell 2000 and 3000 indexes, effective after market close on June 27, 2025. This inclusion reflects the company’s growing recognition in the equity market. Furthermore, H.C. Wainwright analysts reiterated their Buy rating after reviewing interim analysis from the ongoing Phase 2 EFZO-CONNECT study. This study assesses efzofitimod in systemic sclerosis-related interstitial lung disease, aiming to evaluate its efficacy and safety.
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