JMP Securities starts Astria Therapeutics stock at Market Outperform

Published 31/01/2025, 11:30
JMP Securities starts Astria Therapeutics stock at Market Outperform

On Friday, JMP Securities initiated coverage on Astria Therapeutics (NASDAQ: ATXS), assigning a Market Outperform rating and setting a price target of $26.00. The stock, currently trading at $7.49, sits near its 52-week low of $7.16, significantly below its high of $16.90. According to InvestingPro data, analysts’ price targets range from $16 to $35, suggesting substantial upside potential. The firm’s analyst highlighted Astria’s utilization of its proprietary half-life extension technology to create long-acting monoclonal antibodies (mAbs) aimed at well-established targets within sizeable and validated markets. With a market capitalization of $422.69 million, Astria maintains a strong financial position, holding more cash than debt on its balance sheet.

Astria’s lead drug candidate, navenibart, has entered Phase 3 trials with the goal of preventing attacks related to hereditary angioedema (HAE), a rare genetic condition that causes severe swelling in various parts of the body. The initiation of this advanced stage of testing marks a significant step forward for the company’s pipeline.

In addition to navenibart, Astria is advancing its second drug candidate, STAR-0310, which is commencing clinical trials for the treatment of atopic dermatitis. This move into the clinical phase for STAR-0310 demonstrates Astria’s commitment to expanding its portfolio and addressing needs within the dermatological field.

The positive outlook from JMP Securities reflects confidence in Astria’s strategic approach to drug development, leveraging de-risked targets to potentially bring new therapies to market. With two candidates progressing through the clinical pipeline, the company is poised to address significant needs in the therapeutic areas of HAE and atopic dermatitis.

Astria Therapeutics, by focusing on these large, proven markets with its innovative technology, aims to deliver long-term value to patients and shareholders alike. The Market Outperform rating and $26.00 price target from JMP Securities underscore the potential that the firm sees in Astria’s current strategy and pipeline development. InvestingPro analysis indicates the stock is currently undervalued, with multiple additional insights available to subscribers, including 8 more ProTips and detailed financial metrics.

In other recent news, Astria Therapeutics has made significant strides in the biotech sector. The company has expanded its 2022 Inducement Stock Incentive Plan, increasing the number of shares reserved for issuance. This move is aimed at attracting and retaining top talent. Astria Therapeutics has also been the subject of several notable developments, including the initiation of a Phase 1a study for STAR-0310, a potential treatment for atopic dermatitis.

Astria Therapeutics announced the commencement of its ALPHA-ORBIT Phase 3 clinical trial for navenibart, a treatment for hereditary angioedema (HAE). The FDA has cleared Astria’s new drug for atopic dermatitis (AD) for trial, with initiation expected in 2026. Analyst firms TD Cowen and H.C. Wainwright have maintained their Buy ratings for Astria, while JMP Securities has initiated coverage with a $26 target and Oppenheimer has raised its stock target for the company.

These are recent developments that highlight Astria Therapeutics’ continued progress in the biotech sector. Despite negative earnings expected this year, the company’s robust balance sheet shows more cash than debt, providing runway for its development programs. As Astria Therapeutics continues to advance its drug programs, investors and industry watchers will be keeping a close eye on the company’s next moves.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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