Bullish indicating open at $55-$60, IPO prices at $37
On Tuesday, Citi analysts boosted their price target on Akero Therapeutics (NASDAQ:AKRO) shares to $80 from the previous $65, while keeping a Buy rating on the stock. Currently trading at $51.71, the stock has seen remarkable momentum, with InvestingPro data showing a 102% return in just the past week. Analyst targets now range from $35 to $96, with a strong consensus Buy rating of 1.42 (where 1 is Strong Buy). The adjustment follows Akero's presentation of promising 96-week SYMMETRY data for efruxifermin (EFX) in patients with compensated cirrhosis caused by metabolic-associated steatohepatitis (MASH F4C). The trial marked a significant milestone by achieving statistically significant fibrosis improvement, a first in this challenging patient demographic that currently lacks treatment options.
The analysts highlighted the data as a best-case scenario for EFX, reinforcing its potential as a foundational treatment for cirrhotic MASH patients. Citi's outlook remains positive, anticipating further upside from the current stock levels due to increased strategic interest in the company. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 17.25, indicating robust liquidity to support its clinical development programs. Moreover, the ongoing launch of Rezdiffra and the development of GLP-1 treatments for MASH are expected to expand the market and attract more investor attention to this sector.
Investors are also keen on the possibility of accelerated approval from the FDA, given the robustness of the data, which could prompt a reevaluation of earlier guidance requiring long-term clinical outcomes for approval. The strength of the recent findings has been a key factor in maintaining the Buy rating and raising the price target.
Akero's EFX has shown a potential breakthrough in treating a patient population that has been historically difficult to manage, with no available treatment options to date. The positive trial results and the anticipation of market growth in MASH treatments contribute to a favorable forecast for Akero Therapeutics' stock performance. With a beta of -0.2, the stock tends to move independently of market trends, offering potential diversification benefits. InvestingPro subscribers have access to 12 additional investment tips and comprehensive financial metrics to better evaluate this promising biotech opportunity.
In other recent news, Akero Therapeutics has seen a series of notable developments. H.C. Wainwright has raised its price target for Akero to $72 and maintained a buy rating, reflecting the market's optimism about the company's potential. The firm's revised target is based on the potential value of Akero's treatment candidate, EFX, for patients with MASH and F2/F3 fibrosis.
Morgan Stanley (NYSE:MS) also exhibited confidence in Akero, raising the company's price target to $96 while retaining its positive Overweight rating. This adjustment was prompted by impressive outcomes from the SYMMETRY study, leading to an increase in the expected success of the company's treatment in F4 NASH patients.
Jefferies reaffirmed its Buy rating and a price target of $50.00 on Akero following the release of the company's Phase IIB study results. The study showed a significant reversal of fibrosis, boosting confidence in the potential success of upcoming Phase III trials.
Akero Therapeutics also 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, efruxifermin (EFX). These are recent developments in the ongoing efforts by Akero Therapeutics to advance treatments in their respective fields.
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