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On Tuesday, Canaccord Genuity adjusted its outlook on Akero Therapeutics (NASDAQ: NASDAQ:AKRO) shares, raising the price target to $73 from the previous $56 while maintaining a Buy rating on the stock. The revision follows the release of positive 96-week SYMMETRY data in F4 MASH reported earlier in the day. The market responded enthusiastically, with the stock surging over 100% in the past week. According to InvestingPro data, AKRO has delivered an impressive 134% return over the past year.
The Canaccord analyst expressed optimism regarding the trial results of efruxifermin (EFX), Akero's leading therapeutic candidate. The data indicated a significant improvement in fibrosis for patients, which the analyst believes could establish a new benchmark for F4 biopsy-driven studies in the treatment of MASH. The company maintains a strong financial position, with InvestingPro analysis showing a healthy current ratio of 17.25, indicating robust liquidity to support ongoing clinical development.
The SYMMETRY study's findings are significant for Akero Therapeutics as they provide a strong indication of EFX's potential efficacy in treating metabolic disorders. Efruxifermin has shown a robust fibrosis improvement effect, which is a key factor in treating liver diseases like MASH.
Akero Therapeutics focuses on developing treatments for serious metabolic diseases, with a particular emphasis on nonalcoholic steatohepatitis (NASH), a liver disease with no currently approved therapies. The positive trial results are likely to be a critical driver for the company's future development and regulatory milestones.
The increased price target reflects Canaccord's confidence in Akero Therapeutics' prospects, particularly in light of the recent study results. The firm's maintained Buy rating indicates a positive outlook for the stock's performance over the next 12 months. Analyst targets currently range from $35 to $96, with the stock showing a negative beta of -0.2, suggesting it often moves counter to market trends. For deeper insights into AKRO's valuation and 14 additional ProTips, visit InvestingPro.
In other recent news, Akero Therapeutics has been the focus of several analyst upgrades following promising data from its SYMMETRY study. Citi analysts have raised their price target on the company to $80, citing promising data for efruxifermin (EFX) in patients with compensated cirrhosis. H.C. Wainwright also increased its price target for Akero to $72, while Morgan Stanley (NYSE:MS) lifted the company's price target to $96. These adjustments were prompted by the substantial reversal of fibrosis demonstrated in the Phase 2b SYMMETRY study.
Jefferies reaffirmed its Buy rating and a price target of $50 on Akero following the release of the study results, which significantly de-risked the upcoming Phase III trials. The positive trial results and the anticipation of market growth in MASH treatments contribute to a favorable forecast for Akero Therapeutics' stock performance.
In addition, Akero Therapeutics reported preliminary topline results from its Phase 2b SYMMETRY study, which showed a statistically significant reversal in fibrosis for patients treated with the company's leading drug candidate, EFX. These are recent developments in the ongoing efforts by Akero Therapeutics to advance treatments in their respective fields.
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