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On Tuesday, RBC Capital Markets sustained their positive stance on Aardvark Therapeutics Inc (NASDAQ:AARD), maintaining an Outperform rating and a $21.00 price target. Currently trading at $7.51, the stock has experienced significant pressure, down 47.5% year-to-date. According to InvestingPro data, analyst consensus remains strongly bullish with targets ranging from $21 to $50. The firm’s analysts highlighted the upcoming Phase III PWS data, expected early 2026, as a significant potential catalyst for the stock. They noted that despite Aardvark Therapeutics’ stock weakness, even after competitor Soleno Therapeutics’ (NASDAQ:SLNO) first PWS drug approval, the current valuation presents an attractive entry point for investors. The company maintains a strong financial position with a current ratio of 31.65 and more cash than debt on its balance sheet. InvestingPro subscribers can access 8 additional key financial insights about AARD’s potential.
The analysts pointed out that Soleno Therapeutics is currently valued at approximately $3 billion in enterprise value following the approval of its DCCR treatment for Prader-Willi Syndrome (PWS). They believe that positive data from Aardvark’s Phase III trials could similarly drive substantial upside potential for the company’s stock, which currently has a market capitalization of just $205 million.
The optimism from RBC Capital Markets is partly based on the novel mechanism, safety profile, and Phase II data of Aardvark’s ’101’ drug candidate, which they suggest signals potential activity. They acknowledge the risks associated with the small Phase II dataset but still consider the setup leading into the data release to be attractive.
The anticipation of the Phase III PWS data readout is a key event for Aardvark Therapeutics, as positive results could significantly impact the company’s valuation and market position. RBC Capital Markets’ maintained price target of $21.00 reflects their confidence in the potential of Aardvark’s ’101’ to succeed in the upcoming trials.
In other recent news, Aardvark Therapeutics has been the subject of several analyst updates and developments in its treatment pipeline. Cantor Fitzgerald maintained an Overweight rating with a $50 price target for Aardvark Therapeutics, highlighting the potential of ARD-101 in conjunction with VYKAT XR for Prader-Willi Syndrome (PWS). BofA Securities raised its price target for Aardvark to $26, citing optimism about the company’s phase 3 trial data for PWS-hyperphagia, while reaffirming a Buy rating. RBC Capital initiated coverage with an Outperform rating and a $21 price target, driven by the promising future of ARD-101 and its applications in orphan diseases and obesity treatments.
Additionally, Morgan Stanley (NYSE:MS) began coverage with an Overweight rating and a $29 price target, emphasizing the potential of ARD-101 to address metabolic disorders. The company’s lead product, ARD-101, is currently in phase 3 trials and has shown favorable safety and clinical activity in earlier studies. Analysts have noted the significant unmet medical need in the PWS market and the potential for Aardvark’s drugs to fulfill this gap. The company is also exploring treatments for hypothalamic obesity and broader obesity conditions. These developments reflect a cautious optimism among analysts about Aardvark Therapeutics’ prospects in the pharmaceutical landscape.
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