Oppenheimer initiates Tectonic Therapeutics stock with Outperform rating

Published 03/09/2025, 11:52
Oppenheimer initiates Tectonic Therapeutics stock with Outperform rating

Investing.com - Oppenheimer has initiated coverage on Tectonic Therapeutics Inc. (NASDAQ:TECX) with an Outperform rating and a price target of $80.00. The stock, currently trading at $16.65, has seen a significant decline of 37% in the past week, though InvestingPro data shows analysts maintain a strong buy consensus with price targets ranging from $64 to $101.

The research firm cited the promising prospects of Tectonic’s lead asset TX45 in addressing cardiovascular disorders that currently lack adequate treatment options. Oppenheimer specifically highlighted TX45’s initial results in patients with PH-HFpEF, a condition affecting approximately 1.4 million patients in the United States. According to InvestingPro analysis, while the company shows strong financial health with a current ratio of 25.6 and minimal debt, it’s currently burning through cash with negative EBITDA of $72.62 million.

Oppenheimer expressed optimism about the upcoming Phase 2 readout expected next year, suggesting this milestone could potentially lead to multi-billion dollar global sales for the treatment. The firm also noted that data from a related program expected this fall could further strengthen confidence in TX45.

Additional data for TX45 in PH-HFrEF, which affects approximately 1.1 million patients in the U.S., is anticipated in early fourth quarter and could represent a similarly significant opportunity according to the research note.

Oppenheimer indicated that Tectonic’s current cash position should provide more than three years of operational runway, and with an enterprise value of approximately $200 million, the firm views 2025-2026 as potentially transformational periods for the company.

In other recent news, Tectonic Therapeutics has been the focus of several notable developments. Truist Securities initiated coverage on Tectonic Therapeutics with a Buy rating, setting a price target of $64.00. The research firm highlighted the significant upside potential due to the company’s development of TX45, a treatment for Group 2 pulmonary hypertension with heart failure with preserved ejection fraction. Additionally, Tectonic Therapeutics held its Annual General Meeting of Stockholders, where key decisions were made. Alise Reicin, M.D., and Praveen Tipirneni, M.D., were elected as Class I directors, with their terms extending until the 2028 Annual General Meeting. Dr. Reicin received 14,469,766 votes in favor, while Dr. Tipirneni secured 14,452,647 votes. These recent developments reflect ongoing strategic and governance activities within the company.

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