Truist Securities initiates Upstream Bio stock with Buy rating on respiratory drug potential

Published 14/10/2025, 11:54
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Investing.com - Truist Securities initiated coverage on Upstream Bio (NASDAQ:UPB), currently valued at $1.1 billion, with a Buy rating and a $47.00 price target on Tuesday. The stock has shown impressive momentum, surging over 160% in the past six months.

The research firm highlighted the company’s TSLP-receptor inhibitor, verekitug, as a differentiated and de-risked biologic treatment option for inflammatory and immunology respiratory diseases, representing a rapidly growing multi-billion dollar market. According to InvestingPro data, analyst targets for the stock range from $35 to $75, reflecting strong confidence in the company’s potential despite current unprofitability.

Truist noted that TSLP ligand blockade has demonstrated broader and deeper efficacy compared to other biologics for severe asthma, citing the approved drug Tezspire from Amgen and AstraZeneca as a comparison.

According to the research firm, verekitug offers similarly robust efficacy to existing treatments but with a significantly improved dosing schedule by targeting the receptor rather than the ligand.

Given the size of the respiratory treatment market and verekitug’s value proposition, Truist believes the drug "could easily become a mega-blockbuster" for Upstream Bio .

In other recent news, Piper Sandler has reiterated its Overweight rating on Upstream Bio, maintaining a price target of $75.00. This comes as the biopharmaceutical company has seen a significant stock momentum, rising approximately 105% over the past six months. Meanwhile, JPMorgan also reaffirmed its Overweight rating with a $35.00 price target, as Upstream Bio anticipates multiple clinical readouts. The investment bank expects positive Phase 2 results for Upstream Bio’s lead asset, verekitug, over the next nine months. These developments highlight the continued interest and positive outlook from analysts on Upstream Bio’s potential.

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

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