BMO reiterates outperform on Verve shares, $30 target

Published 15/04/2025, 14:38
BMO reiterates outperform on Verve shares, $30 target

On Tuesday, BMO Capital Markets maintained a positive outlook on Verve Therapeutics stock, reiterating an Outperform rating with a steady price target of $30.00. The company, currently valued at $468 million, has seen its shares surge nearly 39% in the past week, trading at $5.54. The optimism follows the release of initial clinical data from Verve’s innovative delivery and lipid nanoparticle (LNP) technology, which has shown promising results in terms of safety and efficacy. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, though analysts note it’s currently burning through cash reserves.

The technology in question, VERVE-102, demonstrated a minimal impact on liver function tests (LFT) and platelet counts, with no Grade 3 or higher drug-related adverse events (AEs) reported. This suggests a broad therapeutic window for the treatment. In terms of efficacy, a 0.6 mg/kg dose of VERVE-102 in a small sample of four patients achieved a 53% reduction in low-density lipoprotein cholesterol (LDL-C), which is a significant finding. The analyst pointed out that if converted to a fixed dose of approximately 55 mg, this could imply an even higher LDL-C reduction of 59%. InvestingPro analysis indicates the company maintains a healthy current ratio of 12.65, suggesting strong ability to meet short-term obligations despite ongoing R&D investments.

Furthermore, a dose-response relationship observed in the study indicates potential for even greater efficacy. BMO Capital’s analysis suggests that the fourth cohort in the study, receiving a 0.7 mg/kg dose, could achieve "best-in-disease" LDL-C reduction levels of 61-65% or more. This data places Verve Therapeutics in a favorable position for a potential opt-in by Eli Lilly (NYSE:LLY) by the end of 2025, which could elevate the company’s status in the industry.

The reiteration of the Outperform rating and the $30.00 price target underscores BMO Capital’s confidence in Verve Therapeutics’ prospects based on the recent clinical findings. This endorsement from the firm suggests a positive outlook for the company’s stock as they continue to develop their novel LNP technology.

In other recent news, Verve Therapeutics has reported promising results from its Phase 1b Heart-2 trial for VERVE-102, a treatment for heterozygous familial hypercholesterolemia (HeFH) and coronary artery disease (CAD). The trial showed a significant reduction in low-density lipoprotein cholesterol (LDL-C) levels, with a mean decrease of 53% in participants, surpassing previous benchmarks set by competing treatments. The safety profile of VERVE-102 was well-received, with no serious adverse events or significant changes in safety markers such as liver enzymes or platelets. Following these results, Guggenheim raised its price target for Verve Therapeutics to $24, while Canaccord Genuity increased their target to $39, both maintaining a Buy rating. Cantor Fitzgerald also upgraded the stock to Overweight, citing the drug’s potential best-in-class results and strong financial position with $524.3 million in cash and equivalents. Goldman Sachs noted the efficacy of VERVE-102 and its potential for further development, with a Phase 2 trial planned for the second half of 2025. Analysts have expressed confidence in the continued progress of Verve Therapeutics, highlighting the potential market impact of its cholesterol-lowering therapy. The company is also anticipating a decision from Eli Lilly regarding opt-in rights for the VERVE-102 program, expected in the latter half of 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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