Analyst Ram Selvaraju of H.C. Wainwright reiterated a Buy rating on Aardvark Therapeutics, Inc., retaining the price target of $40.00.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Ram Selvaraju has given his Buy rating due to a combination of factors highlighting Aardvark Therapeutics, Inc.’s potential in the obesity treatment market. The recent acquisition of Metsera by Pfizer for $10 billion underscores the high value of companies with promising obesity treatment pipelines, which in turn emphasizes the undervaluation of Aardvark, currently valued at less than $80 million. Aardvark’s lead asset, ARD-101, is in pivotal development for Prader-Willi syndrome, while ARD-201 is in mid-stage development for broader obesity and cardiometabolic conditions.
ARD-201 has shown promising results in preclinical studies, demonstrating its potential to reduce fat mass while preserving lean muscle mass, which is a significant advantage over existing treatments like tirzepatide. The upcoming Phase 2 trial, POWER, aims to explore ARD-201’s efficacy in preventing weight regain, and its combination with sitagliptin could enhance its therapeutic effects. These developments, along with Aardvark’s recent presentations at the ObesityWeek conference, reinforce the company’s potential to capture a significant share of the obesity treatment market, justifying the Buy rating and a 12-month price target of $40.
In another report released on November 7, BTIG also initiated coverage with a Buy rating on the stock with a $26.00 price target.
Based on the recent corporate insider activity of 14 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 AARD in relation to earlier this year.