Citi sets Structure Therapeutics stock Buy rating, $60 target

On Friday, Citi analysts began covering Structure Therapeutics (NASDAQ:GPCR) with a Buy rating and set a price target of $60.00, citing the potential of the company’s lead drug candidate and its diverse pipeline. Structure Therapeutics is a clinical-stage biotech company working on oral small-molecule therapies aimed at treating obesity and other metabolic disorders. With a market capitalization of $1.57 billion and analyst targets ranging from $50 to $118, InvestingPro analysis suggests the stock is currently trading below its Fair Value.

The company’s main drug, aleniglipron, is an oral GLP1R agonist currently undergoing Phase 2b trials for obesity, with results expected by the end of 2025. According to Citi analysts, aleniglipron could become a strong competitor in the obesity treatment market based on promising weight loss data and favorable tolerability observed in trials. InvestingPro data shows the company maintains a strong financial position with a current ratio of 24.74, indicating robust liquidity to support its clinical programs.

Citi’s coverage note highlighted the 6.2% to 6.9% weight loss achieved at week 12 for the 120mg dosage of aleniglipron and the low rates of adverse event-related discontinuations. These factors contribute to the analysts’ positive outlook on the drug’s market potential.

Beyond aleniglipron, Structure Therapeutics has a varied pipeline that includes ACCG-2671, which is described as a first-in-class oral small-molecule amylin agonist. The analysts predict that there could be significant partnership interest in Structure’s oral pipeline, particularly after the Phase 2b data for aleniglipron becomes available.

Citi’s initiation of coverage reflects their belief in the company’s prospects, naming Structure Therapeutics as a preferred stock within their coverage universe. The focus is now on the upcoming trial results, which could further influence the company’s stock performance and potential partnerships.

In other recent news, Structure Therapeutics has been the focus of several analyst evaluations and market developments. The company reported a substantial cash balance of $884 million at the end of 2024, which management believes will support operations through at least 2027, excluding Phase 3 registration study costs. H.C. Wainwright reaffirmed its Buy rating with a price target of $80, citing the potential advantages of Structure Therapeutics’ alenglipron in the oral GLP-1 drug market. Meanwhile, JMP Securities adjusted its price target to $87, maintaining a Market Outperform rating, and expressed optimism about the upcoming data on orforglipron.

Leerink Partners lowered its price target to $60 from $93 but kept an Outperform rating, adjusting long-term market share expectations for alenglipron due to anticipated competition. The firm also revised its global sales estimates for 2035, impacting projected royalties for Structure Therapeutics. Pfizer (NYSE:PFE)’s recent discontinuation of its obesity drug candidate, danuglipron, has been seen as a positive development for Structure Therapeutics, potentially clearing the competitive field.

Stifel analyst Annabel Samimy noted that Structure Therapeutics’ comprehensive oral small molecule platform could gain traction as the company prepares for its Phase 2 ACCESS programs. The upcoming data from these trials is expected to be a pivotal moment for the company as it advances its lead program through clinical development. Investors and analysts are closely watching these developments, which could significantly impact Structure Therapeutics’ position in the obesity treatment market.

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