Bullish indicating open at $55-$60, IPO prices at $37
On Tuesday, Jefferies reaffirmed its confidence in Akero Therapeutics (NASDAQ:AKRO) with a steady Buy rating and a $75.00 price target, falling within the broader analyst target range of $60 to $109. According to InvestingPro data, the stock appears fairly valued at its current price of $41.12. The decision follows Akero’s recent presentation of compelling data at the European Association for the Study of the Liver (EASL) and the publication of their results in The New England Journal of Medicine (NEJM) last Friday. The data showcased positive results from a placebo-controlled study on F4 cirrhosis, underscoring the potential of Akero’s FGF21 therapy.
Akero’s research revealed that their FGF21 therapy has the most robust placebo-controlled data in its class, which may position the company as an attractive acquisition target. With a current market capitalization of $3.28 billion and impressive returns of over 100% in the past year, investor confidence appears strong. Analysts at Jefferies predict a substantial market opportunity, estimating it could range between $2 billion and $5 billion. This projection is based on treating 50,000 to 100,000 patients at a price point of $50,000 to $100,000 per patient. InvestingPro subscribers can access 8 additional key insights about Akero’s growth potential.
Additionally, a competitor’s oral medication, Rezdiffra, also demonstrated activity in F4 cirrhosis this week. Despite this, Jefferies believes that Akero’s therapy stands out due to its strong data.
Akero’s financial standing appears solid, with the company reporting $1.1 billion in cash reserves. This strength is reflected in the company’s impressive current ratio of 16.8 and minimal debt-to-equity ratio of 0.03. This substantial capital is expected to fund the company’s operations into 2028 and cover expenses through crucial Phase III data trials.
The ongoing Phase III study is a critical step for Akero, as it moves closer to potentially bringing its FGF21 therapy to market. With the backing of Jefferies and the promising data presented, Akero Therapeutics remains a company to watch in the biotechnology sector. For deeper insights into Akero’s financial health and growth prospects, visit InvestingPro for comprehensive analysis and real-time updates.
In other recent news, Akero Therapeutics has shared promising results from its Phase 2b SYMMETRY trial, indicating that its drug efruxifermin (EFX) shows potential in improving liver fibrosis in patients with compensated cirrhosis due to metabolic dysfunction-associated steatohepatitis (MASH). The trial demonstrated positive outcomes in fibrosis improvement at both 36 and 96 weeks, with EFX outperforming placebo groups. Akero’s financial standing appears robust, with the company ending the first quarter of 2025 with $1,128 million in cash and equivalents, which Morgan Stanley (NYSE:MS) believes will support operations into 2028. Analysts have been adjusting their outlooks on Akero, with Citi lowering its price target to $78 while maintaining a Buy rating, and Morgan Stanley reducing its target to $84 but keeping an Overweight rating. Meanwhile, H.C. Wainwright has increased its price target to $75, attributing the rise to the potential of EFX in treating NASH with F2/F3 fibrosis. Clear Street has also initiated coverage with a Buy rating and a $49 price target, citing EFX’s "best-in-class potential" for treating various stages of liver disease. These developments reflect ongoing interest and analysis from financial firms as Akero advances its clinical programs and navigates the evolving landscape for liver disease treatments.
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