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Tuesday, Structure Therapeutics’ stock rating was reiterated by JMP analysts as ’Market Outperform’ with a price target of $87.00, maintaining a positive outlook on the company’s prospects. According to InvestingPro data, the stock has surged nearly 34% in the past week, trading at $18.95, with analyst targets ranging from $50 to $118. The reaffirmation comes as Structure Therapeutics (NASDAQ:GPCR) awaits data on its drug candidate orforglipron, which is anticipated to influence the company’s share performance.
Analysts at JMP expressed optimism about the potential market reaction to the upcoming orforglipron data, specifically regarding its effects on weight loss in diabetic and non-diabetic individuals. The data, expected after 40 and 72 weeks of treatment, respectively, could propel shares if weight loss exceeds 5% in diabetics and 15% in non-diabetics, adjusted for placebo. With a market capitalization of $1.09 billion and a ’Good’ Financial Health score from InvestingPro, the company appears well-positioned to advance its clinical programs.
The analysts underscored the importance of safety in the evaluation of orforglipron, particularly concerning liver toxicity. They noted that the absence of safety issues would likely be a positive catalyst for Structure Therapeutics’ shares. Conversely, any safety concerns could have significant implications not only for Structure Therapeutics but also for other companies developing small molecule GLP agonists. Notably, the stock’s beta of -1.46 indicates it often moves counter to market trends, making it an interesting consideration for portfolio diversification.
The focus on orforglipron’s performance and safety is critical as Structure Therapeutics progresses through the development stages of its treatment options. JMP’s reiteration of the ’Market Outperform’ rating and $87.00 price target reflects confidence in the company’s potential to meet or exceed key clinical benchmarks.
Investors and industry observers will be closely monitoring the forthcoming data on orforglipron, as it has the potential to impact Structure Therapeutics’ valuation and the broader market for GLP agonist therapies.
In other recent news, Structure Therapeutics has been in the spotlight due to Pfizer (NYSE:PFE)’s decision to discontinue its obesity drug candidate, danuglipron. This move by Pfizer, attributed to adverse events like liver toxicity, potentially opens up more opportunities for Structure Therapeutics’ own platform targeting obesity. Analyst Annabel Samimy from Stifel expressed a positive outlook on Structure Therapeutics, noting its comprehensive oral small molecule platform. Meanwhile, Leerink Partners adjusted its price target for Structure Therapeutics to $60 from $93, citing increased competition and recalibrated market share expectations for its leading drug candidate, aleniglipron. Despite this adjustment, Leerink maintains an Outperform rating on the stock.
JMP Securities also revised its price target for Structure Therapeutics, lowering it to $87 from $91, while maintaining a Market Outperform recommendation. Analyst Jonathan Wolleben emphasized that upcoming data from Structure Therapeutics’ ACCESS program is crucial for its stock performance. Financially, Structure Therapeutics ended 2024 with a cash reserve of $884 million, which management believes will support operations through at least 2027. Investors are particularly interested in the anticipated results from the Phase 2 trial of aleniglipron, expected by the end of 2025, as these could significantly impact the company’s future trajectory.
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