RBC cuts 89bio stock target, keeps rating on MASH study clarity

Published 06/08/2024, 12:34
RBC cuts 89bio stock target, keeps rating on MASH study clarity

On Tuesday, RBC Capital Markets adjusted its outlook on shares of 89bio Inc . (NASDAQ: NASDAQ:ETNB), a clinical-stage biopharmaceutical company. The firm decreased the price target to $12.00 from the previous $13.00 while maintaining a Sector Perform rating on the stock.

The revision comes as 89bio progresses with its phase III studies in metabolic-associated steatohepatitis (MASH), with both studies currently enrolling participants. RBC Capital's stance remains cautious due to the time frame for biopsy readouts and pending data on the role of GLP-1s and other drugs for obesity and type 2 diabetes in the treatment of MASH.

The analyst from RBC Capital acknowledged the potential position of 89bio's drug candidate, pegozafermin, in addressing MASH and noted the FDA's receptiveness to the company's study designs, which could lead to quicker confirmatory outcomes. Despite this, the firm awaits greater clarity on several fronts before adopting a more favorable stance.

The reduction in the price target to $12.00 is attributed to updates in the financial model. This adjustment reflects the analyst's tempered expectations and the various factors that could influence the company's trajectory in the near term.

89bio is focused on the development of innovative therapies for the treatment of liver and cardio-metabolic diseases. The company's lead product candidate, pegozafermin, is being evaluated for its effectiveness in patients with nonalcoholic steatohepatitis (NASH), a more severe form of MASH.

In other recent news, 89bio's earnings and revenue results have been a focal point for various analysts. UBS maintained its Buy rating on 89bio, with a steady price target of $25. The firm's analysis followed the full results presentation for survodutide at the European Association for the Study of the Liver and a concurrent publication in the New England Journal of Medicine.

Evercore ISI reduced 89bio's price target to $33 due to projected expenses, but sustained an Outperform rating. RBC Capital Markets also adjusted its outlook, reducing the price target to $13 while maintaining a Sector Perform rating. H.C. Wainwright lowered its price target to $29, but retained a Buy rating.

These recent developments highlight the ongoing progress in the company's clinical trials, including those for pegozafermin, a treatment for Metabolic Associated Steatohepatitis. The company is also conducting Phase 3 studies for severe hypertriglyceridemia, with results expected in 2025. As these trials progress, analysts continue to evaluate the potential impact on 89bio's financial prospects.

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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