In a report released on February 2, Thomas Smith from Leerink Partners reiterated a Buy rating on 89bio (ETNB – Research Report), with a price target of $37.00.
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Thomas Smith has given his Buy rating due to a combination of factors that highlight the potential of 89bio’s stock. The recent positive 96-week data from a Phase 2b SYMMETRY study involving a similar FGF21 analog in NASH patients with compensated cirrhosis has provided strong evidence supporting the efficacy of the FGF21 class. This data, showing significant improvements in fibrosis, is considered transformational and reduces the risk associated with 89bio’s own FGF21 analog, pegozafermin.
Additionally, despite some erosion in MASH resolution rates over time, the results remain statistically significant and clinically meaningful. The safety profile of the treatment, while showing some mild to moderate gastrointestinal side effects, aligns with previous trials, and the observed minor reductions in bone-mineral density are deemed manageable. These findings bolster confidence in the ongoing development of pegozafermin, which is being further studied, adding momentum to the NASH treatment landscape and justifying the increased price target.
In another report released yesterday, Wolfe Research also initiated coverage with a Buy rating on the stock with a $15.00 price target.
Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ETNB in relation to earlier this year.