Wolfe Research downgrades Vera Therapeutics stock rating on limited catalysts

Published 04/08/2025, 18:40
Wolfe Research downgrades Vera Therapeutics stock rating on limited catalysts

Investing.com - Wolfe Research downgraded Vera Therapeutics (NASDAQ:VERA) from Outperform to Peerperform on Monday. According to InvestingPro data, the company maintains a FAIR financial health score, with analysts setting price targets between $23 and $100.

The downgrade comes as Vera Therapeutics shares have declined approximately 57% since November, with InvestingPro data showing a year-to-date decline of 50.46%. The firm noted that the stock has not shown recovery despite the broader biotech sector rally in June. Based on InvestingPro’s Fair Value analysis, the stock appears slightly undervalued at current levels.

Wolfe Research cited "limited internal catalyst path" as a key factor in its decision to lower the rating. The firm also pointed to increasing competitive pressure in Vera’s market space.

The research note highlighted "fading M&A prospects" as another concern for the biotech company, suggesting diminished expectations for potential acquisition interest.

Wolfe Research concluded that these factors collectively indicate "limited near-term upside" potential for Vera Therapeutics shares, prompting the downgrade to Peerperform.

In other recent news, Vera Therapeutics has announced positive topline results from its Phase 3 ORIGIN study, which evaluated atacicept for the treatment of immunoglobulin A nephropathy (IgAN). The study demonstrated a statistically significant 42% reduction in urine protein creatinine ratio (UPCR) compared to placebo at Week 36, a result that surpassed both investor and firm expectations. H.C. Wainwright responded by raising its price target for Vera Therapeutics to $85, maintaining a Buy rating, while TD Cowen also reaffirmed a Buy rating with a $60 price target, highlighting the strong performance of atacicept. JPMorgan reiterated an Overweight rating with a $68 target, noting the clean safety profile of atacicept and its promising Phase 2b data. Evercore ISI maintained an Outperform rating and a $75 target, expressing optimism about Vera’s preparations for an FDA meeting and future study enrollments. Despite a market reaction to a competitor’s study, H.C. Wainwright suggested the response might be an overreaction, emphasizing the vast potential of the IgAN treatment market. These developments reflect a growing confidence among analysts regarding Vera Therapeutics’ prospects in the renal treatment space.

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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