H.C. Wainwright reiterates Buy rating on Aardvark Therapeutics stock

Investing.com - H.C. Wainwright has reiterated its Buy rating and $40.00 price target on Aardvark Therapeutics Inc (NASDAQ:AARD), following Pfizer’s acquisition announcement of Metsera. The stock, currently trading at $11.23, has shown strong momentum with a 9.45% gain over the past week. According to InvestingPro data, analyst targets range from $19 to $50, suggesting significant upside potential.

On Monday, Pfizer announced a deal to acquire Metsera for an initial $4.9 billion in cash, with potential additional payments of $2.4 billion tied to milestone achievements.

The acquisition gives Pfizer access to Metsera’s pipeline of injectable and oral drug candidates, including MET-097i, a Phase 2b injectable GLP-1 receptor agonist that could support monthly dosing.

Metsera’s clinical pipeline also includes a monthly injectable amylin analog with potential for combination with MET-097i, and an oral GLP-1 designed for enhanced weight loss compared to small molecules.

H.C. Wainwright noted that the substantial premium of over 50% paid for Metsera enhances Aardvark’s appeal in the obesity treatment market, supporting the firm’s maintained Buy rating and 12-month price target. InvestingPro analysis shows AARD maintains a GOOD financial health score, with a robust current ratio of 14.04 and more cash than debt on its balance sheet. Unlock 8 additional ProTips and comprehensive valuation metrics with an InvestingPro subscription.

In other recent news, Aardvark Therapeutics announced promising results from a preclinical study of its investigational drug ARD-201, which showed a 19% body weight reduction in diet-induced obese mice after 30 days of treatment. The study also indicated that ARD-201 helped maintain weight loss when combined with low-dose tirzepatide. Meanwhile, Cantor Fitzgerald reiterated its Overweight rating on Aardvark Therapeutics, maintaining a $50.00 price target, citing the company’s market capitalization and potential success in its Phase 3 study. RBC Capital, however, lowered its price target for Aardvark to $19.00 from $20.00, pointing to delays in the company’s clinical plans, including the postponed start of a Phase III trial for its ’101 drug in Prader-Willi syndrome to the third quarter of 2026. Additionally, H.C. Wainwright initiated coverage on Aardvark with a Buy rating and a $40.00 price target, noting the company’s innovative approach in treating obesity and hyperphagic conditions. These developments reflect a mix of optimism and caution among analysts regarding Aardvark’s future prospects.

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