Moody’s upgrades Agnico Eagle’s rating to A3 on debt reduction
On Tuesday, Truist Securities expressed continued confidence in Scholar Rock (NASDAQ:SRRK), maintaining a Buy rating and a $45.00 price target for the biopharmaceutical company’s stock. The stock, currently trading at $37.16, has shown remarkable momentum with a 138% return over the past year. According to InvestingPro data, analyst targets range from $39 to $57, with a strong consensus recommendation of 1.44 (where 1 is Strong Buy). The endorsement comes as the market anticipates the release of EMBRAZE study data in the second quarter of 2025, which will evaluate the effects of apitegromab in combination with GLP therapy in obese patients.
Analysts at Truist Securities have addressed investors’ queries regarding the expectations and potential outcomes of the upcoming data release. They anticipate that the results will further confirm the effectiveness of apitegromab on muscle function. InvestingPro analysis indicates the company maintains a fair financial health score, with a strong current ratio of 3.88 and moderate debt levels, providing stability as it pursues clinical developments. Get access to 10+ additional ProTips and comprehensive financial metrics with InvestingPro’s detailed research reports. The firm also suggests that the current stock price does not factor in the potential benefits of treating obesity, identifying a greater than 25% upside if the combination therapy results in additional weight loss compared to GLP therapy alone. They estimate a 15-25% upside if the data shows neutral weight but functional benefits, and a 10-20% downside risk in the event of mixed data or weight gain.
Truist Securities believes that unless unexpected safety concerns arise, there should be no adverse effects on the use of apitegromab for treating Spinal Muscular Atrophy (SMA). Furthermore, they expect management to provide guidance on the strategic path forward during the earnings call scheduled for February 27, 2025.
The firm’s analysts view the forthcoming data as a potential additional validation for apitegromab and its therapeutic benefits. They also believe that the information could offer insights into the future direction of the company. The risk/reward balance is seen as favorable, with a significant potential upside compared to the downside risks. While the company’s market capitalization stands at $3.5 billion, InvestingPro’s Fair Value analysis suggests the stock is currently trading above its intrinsic value, making careful entry point consideration crucial for investors.
In other recent news, Scholar Rock has submitted a Biologics License Application (BLA) to the U.S. Food and Drug Administration (FDA) for apitegromab, a treatment targeting spinal muscular atrophy (SMA). This submission is supported by data from the Phase 3 SAPPHIRE trial, which showed a statistically significant improvement in motor function for patients receiving the treatment. The FDA has previously granted apitegromab Fast Track, Orphan Drug, and Rare Pediatric Disease designations. Scholar Rock is also preparing for a potential U.S. launch in the fourth quarter of 2025, following anticipated regulatory approvals. Analysts from H.C. Wainwright and Truist Securities have both raised their price targets for Scholar Rock, citing the positive trial results and reduced competition in the SMA market. H.C. Wainwright increased its price target to $50.00, while Truist Securities set theirs at $45.00, both maintaining a Buy rating. The company is also advancing its cardiometabolic program, with Phase 2 trials expected in the coming years. Scholar Rock’s financial position remains strong, with sufficient funds to support operations through the fourth quarter of 2026.
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