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On Wednesday, Jefferies analyst Michael Yee increased the price target for Akero Therapeutics stock, listed on (NASDAQ:AKRO), to $75 from the previous $50, while maintaining a Buy rating for the stock. Currently trading at $54, AKRO has demonstrated remarkable momentum with a 105% surge in the past week alone. The adjustment of the price target comes in the wake of promising Phase IIB trial results for Akero’s treatment for NASH (non-alcoholic steatohepatitis), particularly in patients with F4 cirrhosis. InvestingPro data reveals 15+ additional insights about AKRO’s performance and potential.
Yee’s optimistic revision is based on the company’s potential to capture a $2-3 billion-plus clear opportunity in the NASH market, given the strong data and the significant visibility that has been de-risked. With a current market capitalization of $3.79 billion and a healthy current ratio of 17.25, the company maintains strong financial flexibility. The analyst notes that Akero Therapeutics’ case is similar to other positive biotech examples, citing factors such as impressive Phase IIB data, high unmet medical need, lack of major competition, a novel mechanism, and the potential for blockbuster sales.
The analysis suggests that while it will take time to complete Phase III trials and move towards commercialization, the current stage of development makes Akero Therapeutics an ideal candidate for acquisition by larger pharmaceutical companies. Yee draws parallels with other biotech firms like RXDX, KRTX, and ALPN, which have also been seen as attractive acquisition targets following strong clinical data and before commercialization.
The maintained Buy rating indicates a continued positive outlook for Akero Therapeutics by Jefferies, with the raised price target reflecting confidence in the company’s future performance. The analyst’s comments underscore the significance of Akero’s NASH treatment in the context of the broader biotech industry and its attractiveness to big pharma companies looking for promising additions to their portfolios.
In other recent news, Akero Therapeutics has been the focus of several analyst upgrades following the release of positive 96-week SYMMETRY data. Canaccord Genuity raised its price target to $73, while Citi analysts boosted their target to $80. H.C. Wainwright increased its target to $72, and Morgan Stanley (NYSE:MS) lifted the company’s price target to $96. These adjustments follow the release of promising data for efruxifermin (EFX), Akero’s leading therapeutic candidate, in patients with compensated cirrhosis.
The SYMMETRY study’s findings are significant for Akero Therapeutics as they provide a strong indication of EFX’s potential efficacy in treating metabolic disorders. Jefferies reaffirmed its Buy rating and a price target of $50 on Akero following the release of the study results, which significantly de-risked the upcoming Phase III trials.
Akero Therapeutics also reported preliminary topline results from its Phase 2b SYMMETRY study, which showed a statistically significant reversal in fibrosis for patients treated with EFX. These are recent developments in the ongoing efforts by Akero Therapeutics to advance treatments in their respective fields.
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