Stifel analysts initiate Palvella Therapeutics stock with Buy, $45 target

Tuesday, Stifel analysts initiated coverage on Palvella Therapeutics (NASDAQ:PVLA), assigning a Buy rating and setting a price target of $45.00. The stock, trading near its 52-week high of $29.27, has delivered an impressive 132% return year-to-date. According to InvestingPro data, analyst consensus is highly bullish with price targets ranging from $30 to $50. Palvella Therapeutics, which recently became public through a reverse merger, focuses on developing treatments for rare skin diseases using a versatile topical platform.

Palvella’s lead product, QTORIN™, is a topical formulation of the immunosuppressant rapamycin designed to overcome the systemic limitations and delivery challenges associated with the drug. With a market capitalization of $305 million and a strong financial health score rated as GREAT by InvestingPro, the company’s approach targets multiple rare skin conditions that are currently underserved by existing therapies. The analysts expressed confidence in the product’s clinical success and commercial potential, particularly highlighting the impressive Phase 2 results.

The optimism extends to the upcoming Phase 3 SELVA trial in microcystic lymphatic malformations (mLMs), a condition with significant morbidity and no current development programs. The Stifel team believes the clinical trial has a high chance of success given the product’s safety profile and potency.

Furthermore, Palvella’s expansion into treating cutaneous venous malformations (cVMs) with its Phase 2 TOIVA trial was noted as well-defined and ideally suited for mTOR-targeted treatment. As these conditions have high morbidity and lack development programs, the analysts see a clear path for rapid value creation for Palvella Therapeutics. While the company maintains healthy liquidity with a current ratio of 2.14, InvestingPro analysis suggests the stock is currently trading above its Fair Value. Subscribers can access 11 additional ProTips and comprehensive financial metrics to make more informed investment decisions.

In other recent news, Palvella Therapeutics has been the focus of several analyst firms, each expressing optimism about the company’s prospects. Jones Trading initiated coverage with a Buy rating and a $45 price target, highlighting the potential of Palvella’s QTORIN platform and its lead product, a topical re-formulation of sirolimus, aimed at treating mTOR-driven disorders. Lucid (NASDAQ:LCID) Capital Markets also set a Buy rating with a higher price target of $49, citing the promising Phase 2 trial results for QTORIN rapamycin in treating microcystic lymphatic malformations (MLM) and the drug’s potential versatility.

Scotiabank (TSX:BNS)’s analysts set a Sector Outperform rating and a $50 price target, emphasizing the anticipated pivotal trial readouts that could significantly boost Palvella’s market valuation. Meanwhile, H.C. Wainwright maintained a Buy rating with a $38 target, noting the expansion of the Phase 3 SELVA trial to include younger patients and the potential for a rolling New Drug Application submission in 2026. TD Cowen also initiated coverage with a Buy rating and a $44 target, focusing on the potential of Palvella’s QTORIN formulation platform to address unmet needs in rare genetic skin diseases.

The ongoing Phase 3 trials are critical, with results expected in the first quarter of 2026, and are seen as key milestones for the company’s future. Analysts project that successful commercialization of QTORIN rapamycin could lead to significant sales across multiple indications, further supporting their bullish outlooks. These developments underscore the growing interest in Palvella Therapeutics as it advances its clinical programs.

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