Stifel initiates Palvella Therapeutics with a buy, $45 target

Published 25/03/2025, 21:56
Stifel initiates Palvella Therapeutics with a buy, $45 target

On Tuesday, Stifel analysts began coverage on Palvella Therapeutics (NASDAQ:PVLA), assigning the stock a Buy rating with a price target of $45.00. The stock, which has surged over 130% year-to-date and trades near its 52-week high of $29.27, has attracted significant attention from analysts who maintain price targets ranging from $30 to $50. According to InvestingPro data, the company currently has a strongly bullish analyst consensus rating of 1.33. Palvella Therapeutics, which recently went public through a reverse merger, is focused on creating treatments for rare skin diseases using a versatile topical platform.

The company’s leading product, QTORIN™, is a topical formulation of the immunosuppressant rapamycin, designed to overcome the systemic limitations and delivery challenges associated with the drug. This new treatment aims to provide effective localized delivery for safety and potency in treating various rare skin conditions that are currently underserved.

Stifel’s coverage notes the company’s strategic approach to targeting mTOR-mediated skin diseases, bolstered by promising Phase 2 results. The analysts express high optimism for the clinical success and commercial potential of Palvella’s Phase 3 SELVA trial in microcystic lymphatic malformations (mLMs). The ongoing Phase 2 TOIVA study, focusing on cutaneous venous malformations (cVMs), is also highlighted as a well-defined expansion of the company’s mTOR-targeted treatment portfolio.

Palvella Therapeutics is recognized as the sole developer of a treatment program for these high-morbidity conditions, which positions the company for potential rapid value creation according to Stifel’s analysis. The endorsement from Stifel arrives as Palvella continues to advance its clinical programs with the goal of addressing the significant unmet needs within the rare skin disease market. While the stock currently trades above its InvestingPro 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 reports following its recent public listing through a reverse merger. Stifel analysts initiated coverage with a Buy rating and a $45 price target, expressing confidence in the company’s lead product, QTORIN™, which is undergoing a Phase 3 trial for microcystic lymphatic malformations (mLMs). Jones Trading also assigned a Buy rating with the same price target, highlighting the potential for an accelerated New Drug Application due to the promising Phase 2 results. Lucid (NASDAQ:LCID) Capital Markets set a higher price target of $49, citing the potential of QTORIN rapamycin to become the first FDA-approved therapy for mLMs and its expansion into cutaneous venous malformations (CVMs).

Scotiabank (TSX:BNS) offered a Sector Outperform rating with a $50 price target, pointing to upcoming trial readouts that could significantly enhance Palvella’s market valuation. 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 continuous therapy. The trial has received several FDA designations, including Breakthrough and Fast Track, along with an Orphan Product Grant. These developments underscore the significant market potential and unmet medical need addressed by Palvella’s pipeline. The anticipated trial results and regulatory milestones are key factors being closely watched by investors.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.