Jefferies maintains $28 target on VERV stock, cites upside potential

Published 15/04/2025, 11:56
Jefferies maintains $28 target on VERV stock, cites upside potential

On Tuesday, Jefferies reiterated a Buy rating on Verve Therapeutics (NASDAQ:VERV) shares with a consistent price target of $28.00, well within the broader analyst range of $15-$39. Following a recent update on the Phase 1b study for VERVE-102, the company’s stock experienced a significant rise, with InvestingPro data showing a remarkable 38.72% gain over the past week. Jefferies highlighted the positive safety and pharmacodynamic (PD) data from the trial, which supports the potential efficacy of VERVE-102 as a one-time gene editor for patients with heterozygous familial hypercholesterolemia (HeFH) and coronary artery disease (CAD).

The updated data aligns with the company’s previously set guidance and benchmarks to the PCSK9 siRNA treatment, Leqvio (Inclisiran). Since the announcement of the data, Verve Therapeutics’ stock has surged by approximately 20%. With a strong current ratio of 12.65 and more cash than debt on its balance sheet, the company appears well-positioned financially. Analysts at Jefferies pointed out the potential for the stock to return to its prior market capitalization of over $1 billion, compared to its current market cap of $366 million, as seen before the safety issue with VERVE-101 was reported last year, barring any negative macroeconomic factors.According to InvestingPro, there are 8 additional key insights available about Verve Therapeutics’ financial health and market position. Subscribers gain access to comprehensive analysis and real-time updates.

Currently, with a market capitalization of around $300 million, Verve Therapeutics is viewed as a significantly undervalued stock, a perspective supported by InvestingPro’s Fair Value analysis. With a beta of 1.87 indicating higher volatility than the market, Jefferies sees a great upside in the company’s one-time gene editors, which promise enduring efficacy for common diseases with substantial unmet needs, such as high discontinuation rates and patient compliance issues. The firm anticipates continued stock momentum driven by the PCSK9 program throughout 2025 and 2026.Get access to Verve Therapeutics’ complete Pro Research Report, along with 1,400+ other detailed company analyses, by subscribing to InvestingPro.

Verve Therapeutics is preparing to deliver the opt-in package for its PCSK9 program to its collaborator, Eli Lilly and Company (NYSE:LLY), and is expecting a decision in the second half of 2025. This upcoming milestone is among the multiple catalysts anticipated to drive the stock’s upside potential, with the next earnings announcement scheduled for May 7, 2025.

In other recent news, Verve Therapeutics has announced promising initial data from its Heart-2 Phase 1b clinical trial of VERVE-102, a gene-editing therapy designed to reduce LDL cholesterol levels. The trial results showed significant LDL-C reductions and a positive safety profile, with the highest dose cohort experiencing an average LDL-C reduction of 53% and a peak reduction of 69%. The FDA has granted Fast Track designation to VERVE-102, potentially expediting its development and review process. The company plans to commence a Phase 2 clinical trial in the second half of 2025, pending regulatory approval.

Additionally, Verve Therapeutics has decided to discontinue the development of VERVE-101 but will continue long-term monitoring of its participants. Under a collaboration agreement, Eli Lilly and Company may opt to co-develop and co-commercialize VERVE-102, with a decision expected in the latter half of 2025. The company’s financial position is considered robust enough to support operations into mid-2027. However, Verve Therapeutics experienced a decline in its stock price following a significant shakeup at the FDA, which affected several biotech firms. Despite this, the market remains optimistic about Verve’s innovative approach to cardiovascular disease treatment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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