Wedbush sets Aclaris stock Outperform with $8 target

Published 28/05/2025, 13:24
Wedbush sets Aclaris stock Outperform with $8 target

On Wednesday, Wedbush initiated coverage on Aclaris Therapeutics (NASDAQ:ACRS) shares with an Outperform rating and a price target of $8.00. Currently trading at $1.27, with a market capitalization of $137.5 million, the stock has attracted strong analyst interest. According to InvestingPro data, analysts maintain a bullish consensus with price targets ranging from $2 to $16. The firm highlighted the company’s focus on developing small molecule kinase inhibitors and in-licensed biologics for immunology and inflammation treatment. Aclaris Therapeutics is currently advancing its lead biologic, bosakitug, which is a monoclonal antibody targeting thymic stromal lymphopoietin (TSLP) with notable affinity and potency. InvestingPro analysis shows the company maintains a healthy balance sheet with more cash than debt and a strong current ratio of 5.06, providing financial flexibility for its development programs.

The analyst from Wedbush pointed out that bosakitug has demonstrated strong responses in a Phase 2 single-arm trial for atopic dermatitis (AD) in the United States, with effects that intensified over time. Aclaris is preparing to start a placebo-controlled Phase 2b trial for AD in the second quarter of 2025, with initial data expected in 2026. The company’s lead small molecule, ATI-2138, an oral covalent inhibitor of ITK and JAK3, is also moving forward, with topline results from a Phase 2 trial in AD anticipated in June 2025.

Wedbush expressed confidence in the upcoming clinical data, suggesting that the results have been de-risked by previous successes with ITK inhibitors. The firm anticipates that the data releases will serve as significant catalysts for Aclaris stock, potentially validating its development strategy in the substantial AD market and attracting partnership interest for further development in dermatology and respiratory diseases.

The analyst sees a considerable growth opportunity for Aclaris Therapeutics, considering its two leading candidates could provide multiple product opportunities in the future, contingent upon the forthcoming data readouts. The positive outlook is based on the potential market impact and the strategic positioning of the company’s drug candidates. However, InvestingPro data reveals the stock has faced significant challenges, declining nearly 67% over the past six months. For deeper insights into Aclaris’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, which provides detailed analysis of this and 1,400+ other US stocks.

In other recent news, Aclaris Therapeutics has announced several developments that are drawing attention from investors. The company received FDA clearance for its Investigational New Drug application, allowing ATI-052, a bispecific anti-TSLP/IL-4R monoclonal antibody, to advance into clinical trials. This marks a significant step in their drug development efforts for immuno-inflammatory diseases. Additionally, Aclaris is set to begin a Phase 2 trial for bosakitug, aimed at treating moderate-to-severe atopic dermatitis, following promising results from earlier trials.

In terms of leadership, Aclaris appointed Jesse Hall, M.D., as the new Chief Medical (TASE:BLWV) Officer to lead its clinical strategy. Analysts have also weighed in on Aclaris’s prospects. H.C. Wainwright adjusted the company’s stock price target to $16 while maintaining a Buy rating, and Scotiabank (TSX:BNS) initiated coverage with a Sector Outperform rating and a $15 price target. These ratings reflect optimism about Aclaris’s upcoming clinical data and financial stability.

The company’s financial position is bolstered by a cash runway extending into 2028, providing stability for ongoing research and development. Investors are particularly keen on upcoming data from Chia Tai Tianqing Pharmaceutical (TADAWUL:2070) Group’s asthma program, which could impact Aclaris’s ATI-045. These developments collectively underscore Aclaris’s focus on advancing its pipeline and maintaining a robust financial outlook.

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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