H.C. Wainwright assumes coverage on PolyPid stock with buy rating

On Monday, H.C. Wainwright analysts assumed coverage on PolyPid Ltd. (NASDAQ:PYPD) stock, initiating a Buy rating with a price target of $11, significantly above the current stock price of $2.80. The analysts highlighted the company’s innovative PLEX (Polymer-Lipid Encapsulation matriX) technology, which supports a range of therapeutics, including small molecules, proteins, peptides, and nucleic acids.

PolyPid’s valuation is currently based on its lead product, D-PLEX100, which the market seems to underestimate in terms of potential success, according to the analysts. With a market capitalization of just $28.5 million and an overall weak financial health score according to InvestingPro, they argue that the cautious market perception does not fully account for the broader potential of the PLEX platform.

The analysts believe this situation creates a favorable risk/reward profile for PolyPid stock. They also pointed out an upcoming catalyst for the company: the anticipated Phase 3 SHIELD II data read-out for D-PLEX100, expected in the second quarter of 2025.

PolyPid’s PLEX technology offers a unique approach to drug delivery, which could be applied across various therapeutic areas, enhancing its appeal to investors. The analysts’ positive outlook on the stock is based on the potential for both the lead product and the broader technology platform.

In other recent news, PolyPid Ltd. has announced that its chairman, Jacob Harel, will not seek re-election at the upcoming Annual and Extraordinary General Meeting scheduled for June 25, 2025. Harel has served as a director since November 2017 and as chairman since December 2017. This development was disclosed in a filing with the U.S. Securities and Exchange Commission. Additionally, H.C. Wainwright has maintained a Buy rating for PolyPid with a price target of $11. This follows the successful enrollment completion of the SHIELD II Phase 3 trial concerning D-PLEX100, aimed at preventing surgical site infections in abdominal colorectal surgery patients. The trial’s independent Data Safety Monitoring Board recommended concluding the study after enrolling 800 patients. PolyPid plans to release top-line results by the end of the second quarter of 2025. If the results are positive, the company intends to submit a New Drug Application to the FDA, potentially leading to a U.S. launch by the end of 2026.

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