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On Monday, Jefferies reaffirmed its Buy rating and a price target of $50.00 on Akero Therapeutics (NASDAQ:AKRO) following the release of the company's Phase IIB study results. According to InvestingPro data, analysts maintain a strong consensus on the stock, with price targets ranging from $35 to $65, reflecting the market's optimism about the company's potential. The study, which investigated the treatment of F4 cirrhosis due to NASH (nonalcoholic steatohepatitis), showed a significant reversal of fibrosis. The data indicated a robust and statistically significant fibrosis benefit in both the completers analysis and the intent-to-treat (ITT (NYSE:ITT)) population. In the completers analysis, 39% showed a fibrosis reversal compared to 15% for the placebo, with a p-value of 0.009. In the ITT analysis, the results were 29% versus 12% for the placebo, with a p-value of 0.03.
The positive outcomes from the Phase IIB study have increased confidence in the potential success of the upcoming Phase III trials. According to Jefferies, the study results have significantly de-risked the Phase III trials, estimating a 75% probability of success (PoS). The analyst noted that the strong data positions Akero Therapeutics well for potential mergers and acquisitions (M&A) activity.
The analyst's comments highlight the significance of the data, suggesting that if Akero Therapeutics can maintain this trajectory, the company could be valued at $8 billion or more, significantly above its current market capitalization of $3.62 billion. This valuation is based on a probability-adjusted long-view case that could see the stock reach over $75 in the future. The current price target of $50.00 reflects the analyst's confidence in the stock's performance based on the recent findings. Based on InvestingPro's Fair Value analysis, the stock is currently trading above its calculated Fair Value, suggesting investors should carefully monitor valuation metrics. Get access to 8 additional ProTips and comprehensive financial analysis with InvestingPro.
Akero Therapeutics' stock performance will likely be closely watched by investors as the company progresses into Phase III trials. The recent study results have provided a solid foundation for the company's continued development and potential strategic partnerships or acquisition interest. The market will be paying attention to further developments and the potential impact on Akero Therapeutics' valuation and stock price.
In other recent news, Akero Therapeutics has announced promising results from its Phase 2b SYMMETRY study, demonstrating a significant reversal in fibrosis for patients treated with the company's leading drug candidate, efruxifermin (EFX). The study showed that 39% of patients treated with a 50mg dose of EFX experienced a ≥1 stage improvement in fibrosis without worsening of metabolic dysfunction-associated steatohepatitis (MASH). H.C. Wainwright has maintained its Buy rating on Akero stock, while Citi initiated coverage on the company with a positive outlook, assigning a Buy rating based on the potential of efruxifermin.
On the other hand, Keros Therapeutics has voluntarily paused dosing in certain arms of its Phase 2 TROPOS Trial due to unexpected cases of pericardial effusion among participants. The company is working diligently to understand these findings and is collaborating with regulatory authorities to swiftly resolve the issue.
These developments underline the ongoing efforts by these companies to advance treatments in their respective fields, with Akero Therapeutics making significant strides in the treatment of MASH and Keros Therapeutics diligently addressing safety concerns in its trial.
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