Deutsche Bank initiates coverage on Spyre stock with Buy rating

Investing.com - Deutsche Bank initiated coverage on Spyre (NASDAQ:SYRE) with a Buy rating and a price target of $43.00 on Friday. The stock, currently trading at $15.61, aligns closely with InvestingPro’s Fair Value assessment.

The bank views Spyre Therapeutics as a potential leader in inflammatory bowel disease (IBD) treatments with its extended half-life antibodies and fixed-dose combination therapies. Spyre emerged from Fairmount Funds’ Paragon incubator to develop improved biologic drugs for conditions including ulcerative colitis and Crohn’s disease. Analysts maintain a strong Buy consensus, with price targets ranging from $21 to $71.

Deutsche Bank notes that Spyre is currently modestly valued at approximately $1.0 billion market capitalization while developing multiple monotherapies and combination therapies using validated mechanisms (α4β7, TL1A, IL-23). InvestingPro data shows the company maintains strong liquidity with a current ratio of 6.49 and holds more cash than debt on its balance sheet.

The bank projects significant upside potential, estimating combined peak sales of approximately $5.7 billion for ulcerative colitis and Crohn’s disease treatments if successful, with additional potential from expanding TL1A applications into rheumatic diseases.

Deutsche Bank also highlighted that inflammatory bowel disease has been an active area for large pharmaceutical mergers and acquisitions, particularly following positive mid-stage clinical readouts from companies like Arena, Telavant, Prometheus, and Morphic.

In other recent news, Spyre Therapeutics has dosed the first patient in its Phase 2 SKYWAY basket trial. The trial is evaluating SPY072 for rheumatoid arthritis, psoriatic arthritis, and axial spondyloarthritis. This development highlights the company’s focus on treatments involving T-cell-driven inflammation. Meanwhile, Guggenheim has reiterated its Buy rating for Spyre, maintaining a $65 price target. The firm noted that the company’s SPY003 topline PK readout is on schedule for the fourth quarter of 2025. Similarly, Stifel has reiterated its Buy rating with a $71 price target following Spyre’s second-quarter 2025 update. Stifel emphasized the progress of the company’s SKYLINE-UC platform study. These recent developments reflect ongoing clinical execution and investor confidence in Spyre’s growth prospects.

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