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On Friday, JMP Securities analyst Jonathan Wolleben adjusted the price target for Structure Therapeutics (NASDAQ:GPCR) shares to $87 from the prior target of $91, while continuing to recommend the stock with a Market Outperform rating. According to InvestingPro data, analyst targets for GPCR currently range from $50 to $118, with the stock trading at $22.82. Wolleben highlighted that the ACCESS data remains a pivotal factor for GPCR’s stock performance. He noted that upcoming Phase 3 data from Eli Lilly (NYSE:LLY)’s orforglipron could temporarily impact GPCR’s stock value, potentially offering an appealing buying opportunity before the release of GPCR’s own data.
Wolleben reminded investors that the early-stage results for aleniglipron and orforglipron showed comparable outcomes, with a placebo-adjusted weight loss of 6%-7%. He also pointed out that Structure Therapeutics is currently increasing doses in one of its ongoing trials, which is anticipated to lead to higher weight loss figures.
The company concluded the year 2024 with a substantial cash reserve of $884 million. According to management’s estimates, this financial position should provide Structure Therapeutics with enough capital to operate through at least 2027, not including the funds allocated for its Phase 3 registrational studies in obesity. InvestingPro data confirms the company’s strong liquidity position with a current ratio of 27.63, indicating robust short-term financial health. Get access to the full financial health analysis and 8 additional ProTips for GPCR with an InvestingPro subscription.
The analyst’s comments suggest a cautious but optimistic outlook for Structure Therapeutics, acknowledging the competitive landscape while also recognizing the company’s strong financial footing and potential for its clinical trials to yield positive outcomes.
In other recent news, Structure Therapeutics has been the focus of multiple analyst updates and strategic developments. Stifel analysts initiated coverage of Structure Therapeutics with a ’Buy’ rating and a price target of $50.00, citing the company’s innovative approach in developing oral small molecule medicines for metabolic diseases. H.C. Wainwright also reiterated its ’Buy’ rating with a higher price target of $80.00, following the company’s expansion of its drug pipeline with ACCG-2671, a promising small molecule amylin agonist. Furthermore, Piper Sandler maintained an Overweight rating with a price target of $93.00, highlighting the pre-clinical efficacy of ACCG-2671 as comparable to Novo Nordisk (NYSE:NVO)’s cagrilintide.
The introduction of ACCG-2671 marks a significant advancement for Structure Therapeutics, with plans to initiate a Phase 1 trial by the end of 2025. Piper Sandler emphasized the potential of Structure Therapeutics’ GSBR-1290, noting its role as an indirect catalyst in the obesity treatment landscape. The company is actively progressing with its clinical trials, aiming to validate the mechanism of action of amylin in combination with GLP-1 therapies. Analysts have expressed optimism about Structure Therapeutics’ strategic positioning in the metabolic disorder market, given the scarcity of amylin treatments. These developments reflect a robust confidence among analysts regarding Structure Therapeutics’ potential to innovate and impact the treatment landscape for obesity and related metabolic disorders.
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