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Investing.com - Canaccord Genuity raised its price target on Palvella Therapeutics (NASDAQ:PVLA) stock to $90.00 from $66.00 on Thursday, while maintaining a Buy rating following the company’s announcement of a third indication for its QTORIN rapamycin treatment. The stock, currently trading near its 52-week high of $76.22, has delivered an impressive 523% return year-to-date, according to InvestingPro data.
The new indication targets clinically significant angiokeratomas, which Canaccord describes as a rare, chronically debilitating skin disease with no currently approved therapies. Palvella estimates there are more than 50,000 diagnosed patients in the United States, representing what the firm calls "another large rare opportunity." With a current market capitalization of $828 million, InvestingPro analysis shows the company maintaining strong liquidity with a current ratio of 7.67.
Palvella plans to leverage its existing supply, open Investigational New Drug (IND) application, and current intellectual property coverage for this new indication, which joins the drug’s first two indications - mLM and CVM.
Canaccord added the new opportunity to its financial model, projecting peak sales of $860 million at a 20% probability of success. The firm expressed confidence in QTORIN rapamycin’s potential to treat this indication based on similarities with mLM and "strong scientific rationale."
Palvella anticipates initiating a Phase 2 study for clinically significant angiokeratomas in the second half of 2026.
In other recent news, Palvella Therapeutics has seen several analysts raise their price targets for the company’s stock. Truist Securities increased its price target to $80, maintaining a Buy rating, following investor meetings that highlighted the company’s confidence in its Phase 3 trial for microcystic lymphatic malformations and the upcoming Phase 2 data for cutaneous venous malformation. H.C. Wainwright also raised its target to $95, citing a new indication for Palvella’s QTORIN rapamycin treatment, which now targets clinically significant angiokeratomas. Jones Trading adjusted its price target to $70 after Palvella announced the third indication for its QTORIN treatment, with plans to start a Phase 2 study in the second half of 2026. Oppenheimer increased its price target to $90, emphasizing the market potential for QTORIN in treating angiokeratomas. Stifel joined in by raising its target to $80, noting the addition of the new skin treatment program for angiokeratomas. These developments reflect growing interest and confidence in Palvella’s expanding treatment pipeline.
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