Denison Mines announces $250 million convertible notes offering
On Wednesday, Clear Street, a financial research firm, initiated coverage on Akero Therapeutics (NASDAQ: NASDAQ:AKRO) with a Buy rating and a price target of $49.00. The firm joins a strong consensus among analysts, with InvestingPro data showing analyst targets ranging from $60 to $109. The firm’s analyst highlighted Akero’s primary clinical asset, Efruxifermin (EFX), for its potential in treating non-alcoholic steatohepatitis (NASH), a liver disease with stages ranging from F2 to F4.
Efruxifermin is currently undergoing Phase 3 clinical trials, and Clear Street’s analyst noted its "best-in-class potential" for treating the pre-cirrhosis stages F2-F3, as well as the cirrhosis stage F4. The analyst emphasized the significant results EFX has demonstrated, suggesting a high probability of success in its ongoing studies. According to InvestingPro data, the company maintains a strong financial position with more cash than debt and a healthy current ratio of 19.38, providing ample runway for its clinical programs.
The report further detailed that EFX’s efficacy in the cirrhosis market, particularly for F4 stage patients, stands out when compared to competitors. The analyst pointed out that the statistically significant outcomes from the trials establish a clear differentiation for Akero’s therapeutic offering.
Clear Street also mentioned EFX’s ability to improve fibrosis significantly, which is a key factor in the treatment of NASH. The promising data from cirrhosis trials, combined with a favorable risk-benefit profile, were cited as reasons for the strategic value of EFX. According to the analyst, these factors position EFX competitively against not only emerging GLP1 therapies but also against the marketed drug Rezdiffra.
The bullish outlook from Clear Street is based on what the firm describes as "multifaceted advantages" of EFX. This includes its superior efficacy and potential to become a leading treatment option in the NASH market, particularly for patients in the later stages of the disease. The market appears to share this optimism, with the stock delivering a remarkable 116% return over the past year. Subscribers to InvestingPro can access 12 additional investment tips and comprehensive financial metrics to better evaluate Akero’s potential.
In other recent news, H.C. Wainwright has updated its position on Akero Therapeutics. Analyst Ed Arce has raised the firm’s price target for the company to $75 from the previous $72, while maintaining a Buy rating on the stock. This revision is based on a revised net present value model that evaluates the potential of Akero’s leading drug candidate, EFX, aimed at treating non-alcoholic steatohepatitis (NASH) with F2/F3 fibrosis. Arce estimates a risk-adjusted per-share value of EFX at approximately $50.60, with an 80% probability of success and projected global peak revenues of $5.8 billion by 2037. Additionally, the analyst assigns a preliminary risk-adjusted value of $19.50 per share for EFX in patients with well-compensated cirrhotic (F4) NASH, based on results from the 96-week SYMMETRY study. An extra $4.92 per share is also included for "excess cash" projected beyond a two-year timeframe. The price target assumes market exclusivity for EFX through 2037, with no terminal value considered after this period. Arce also highlights potential risks, such as trial failures or delays, which could affect the company’s future performance and stock valuation.
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