Truist Securities initiates Tectonic Therapeutics stock with Buy rating

Investing.com - Truist Securities initiated coverage on Tectonic Therapeutics Inc. (NASDAQ:TECX) with a Buy rating and a $64.00 price target on Monday. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt and a healthy current ratio of 22.9x.

The research firm cited significant upside potential for the company, which is developing TX45, a relaxin-based treatment for Group 2 pulmonary hypertension with heart failure with preserved ejection fraction (PH-HFpEF).

Truist noted that despite "compelling and de-risking" Phase 1b hemodynamic data reported earlier in 2025, Tectonic currently trades at an enterprise value of approximately $120 million.

The firm attributed the stock’s current valuation to market concerns following the discontinuation of a competitive relaxin program, but argued that the comparison should be limited given TX45’s "superior PK profile and optimized trial design."

Truist expects Phase 2 study data for TX45 in 2026 and characterized the investment opportunity as "highly attractive" with potential upside of over 200% versus downside risk of approximately 40%.

In other recent news, Tectonic Therapeutic, Inc. held its Annual General Meeting of Stockholders where several significant decisions were made. Stockholders elected Alise Reicin, M.D., and Praveen Tipirneni, M.D., as Class I directors, with both set to serve until the 2028 Annual General Meeting. Additionally, the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified by the stockholders. In an advisory vote, the compensation of the company’s named executive officers was approved, and stockholders expressed a preference for annual advisory votes on executive compensation.

Furthermore, Mizuho (NYSE:MFG) Securities initiated coverage of Tectonic Therapeutic with an Outperform rating and a price target of $51 per share. Mizuho’s optimism is driven by the potential of Tectonic’s leading drug candidate, TX45, which is being developed for pulmonary hypertension related to left heart disease. The analysts highlight the significant market potential for TX45, projecting it could reach $3.3 billion in peak sales. Mizuho also notes the favorable risk/reward scenario for Tectonic’s stock, particularly in light of AstraZeneca (NASDAQ:AZN)’s upcoming decision on advancing a similar treatment to Phase 3 trials. These developments are shaping the current outlook for Tectonic Therapeutic.

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