Raymond James assumes coverage on Scholar Rock stock with Strong Buy rating

Investing.com - Raymond (NSE:RYMD) James has assumed coverage on Scholar Rock (NASDAQ:SRRK) with a Strong Buy rating and a price target of $53.00. Currently trading at $37.27, the stock has shown remarkable strength with a 305% return over the past year. According to InvestingPro data, analyst targets range from $46 to $57, reflecting strong institutional confidence in the company’s potential.

The research firm’s coverage comes ahead of the anticipated approval of Scholar Rock’s drug apitegromab this fall.

Raymond James expressed confidence in the value proposition of apitegromab in spinal muscular atrophy (SMA).

The firm noted that despite elevated expectations ahead of the drug’s approval, it sees significant potential in the treatment.

Raymond James also highlighted "plenty of long-term optionality in the pipeline" beyond the company’s lead drug candidate.

In other recent news, Scholar Rock has reported significant developments related to its apitegromab therapy. The company announced promising results from its Phase 2 EMBRAZE trial, where apitegromab, when used in combination with tirzepatide, preserved an additional 4.2 pounds or 54.9% of lean muscle mass during weight loss compared to tirzepatide alone. This trial highlighted the potential for apitegromab to improve the quality of weight loss by preserving lean muscle mass. Additionally, the therapy is being considered for its potential in treating spinal muscular atrophy (SMA), with Truist Securities maintaining a buy rating and a $45.00 price target based on its therapeutic promise. H.C. Wainwright also maintained a buy rating, with a $50.00 price target, following the positive trial results. In corporate developments, Scholar Rock appointed Rebecca McLeod as Chief Brand Officer and U.S. General Manager. McLeod’s extensive experience in the industry is expected to support the upcoming U.S. launch of apitegromab for SMA. These recent developments underscore Scholar Rock’s ongoing efforts to advance its therapeutic offerings.

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