BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
Jefferies downgraded Verve Therapeutics (NASDAQ:VERV) from Buy to Hold on Monday, slashing its price target to $11.00 from $28.00 following Eli Lilly (NYSE:LLY)’s acquisition announcement. The stock has surged over 78% in the past week, reaching near its 52-week high of $11.40, according to InvestingPro data.
The acquisition deal, valued at up to approximately $1.3 billion, offers Verve shareholders $10.50 per share with a potential $3.00 per share contingent value right upon dosing the first ASCVD patient with Verve’s ’102 therapy in a Phase 3 trial. The company maintains a strong financial position with more cash than debt and a healthy current ratio of 9.84x.
The transaction is structured as a tender offer currently supported by approximately 17.8% of Verve shareholders and requires a minimum 51% acceptance for the offer to close.
Eli Lilly appears to be a suitable acquirer given the companies’ existing partnership across Verve’s pipeline, according to Jefferies.
With likely U.S. Federal Trade Commission clearance, Verve expects the acquisition to close in the third quarter of 2025.
In other recent news, Verve Therapeutics announced the results of its Annual Meeting of Stockholders, where key proposals were voted on, including the election of three Class I directors and the ratification of Ernst & Young LLP as the independent accounting firm for 2025. Additionally, the company received analyst attention following its first-quarter earnings report. Canaccord Genuity maintained a Buy rating with a $39 price target, highlighting promising interim data from the VERVE-101 Phase 1b Heart-2 trial. BMO Capital Markets also reiterated an Outperform rating with a $30 target, citing positive initial clinical data from Verve’s innovative lipid nanoparticle technology.
Guggenheim raised its price target for Verve Therapeutics to $24, maintaining a Buy rating after positive results from the Phase 1b Heart-2 trial for VERVE-102. The trial demonstrated a significant reduction in low-density lipoprotein cholesterol levels, with a clean safety profile. William Blair’s analyst supported an Outperform rating, noting the trial’s success in exceeding LDL-C reduction goals and improved safety over previous versions. These developments reflect Verve Therapeutics’ ongoing clinical progress and its potential impact on the treatment of cardiovascular diseases.
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