Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - H.C. Wainwright lowered its price target on Oruka Therapeutics (NASDAQ:ORKA) to $40.00 from $45.00 on Monday while maintaining a Buy rating following the company’s recent financing. The stock, currently trading at $27.25, has shown remarkable momentum with a 172% gain over the past six months. According to InvestingPro data, analyst targets range from $26 to $56, suggesting significant potential upside despite recent gains.
The firm adjusted its valuation after reviewing interim data from Oruka’s Phase 1 trial of ORKA-001, the company’s long-acting IL-23p19 antibody, presented at the European Academy of Dermatology and Venerology Congress in Paris, France. While the company maintains a strong financial position with a current ratio of 27.4x and minimal debt-to-equity of 0.01, InvestingPro analysis indicates the stock is currently trading above its Fair Value.
The Phase 1 trial enrolled 24 healthy adult participants across three single ascending subcutaneous dose cohorts of 300mg, 600mg, and 1,200mg, showing ORKA-001 has a half-life of approximately 100 days—more than three times that of SKYRIZI (risankizumab).
H.C. Wainwright noted that ORKA-001 demonstrated complete and sustained inhibition of STAT3 signaling through 24 weeks and was well-tolerated at all dose levels with no severe treatment-emergent adverse events or serious adverse events reported.
The research firm increased its probability of approval for ORKA-001 to 45% from 40%, citing the drug’s potential for a best-in-disease profile while noting the price target reduction was specifically related to the company’s financing activities.
In other recent news, Oruka Therapeutics has made significant strides with its ORKA-001 antibody treatment, reporting positive interim results from a Phase 1 trial. The trial demonstrated that ORKA-001, designed for plaque psoriasis treatment, has a half-life of approximately 100 days, significantly longer than competing treatments like risankizumab. This development suggests the potential for once-yearly dosing, offering an advantage over current therapies requiring more frequent administration. In addition to these promising results, Oruka Therapeutics secured approximately $180 million through a private investment in public equity financing. This funding will support the company’s continued development of biologics for chronic skin diseases. Analyst firms have responded positively to these developments; Barclays initiated coverage with an Overweight rating and a $48 price target, while BTIG raised its price target to $56, maintaining a Buy rating. The positive data from the ORKA-001 trial was also presented at the European Academy of Dermatology and Venerology Congress, highlighting its potential impact on psoriasis treatment.
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