Akero Therapeutics, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Andrew Tsai from Jefferies downgraded the rating on the stock to a Hold and gave it a $56.00 price target.
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Andrew Tsai has given his Hold rating due to a combination of factors surrounding Akero Therapeutics. The acquisition interest from Novo Nordisk, with a proposed buyout of up to $5.2 billion, highlights the strategic value seen in Akero’s Efruxifermin (EFX), particularly in the MASH treatment space. However, the deal’s premium and the timeline for pivotal Phase III data, which extends into 2027 and beyond, suggest a cautious approach is warranted.
Despite Efruxifermin’s promising Phase IIb results and its potential to be a first-in-class treatment for F4 cirrhosis, there are uncertainties regarding the full realization of peak sales and the probability of success (PoS) in the ongoing trials. Additionally, while the acquisition price offers a significant premium over recent trading prices, it reflects assumptions that may not fully align with previous peak sales expectations. These factors contribute to a balanced view, supporting the Hold rating as the market awaits further clarity on the drug’s clinical and commercial trajectory.
Tsai covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, Xenon, and BridgeBio Pharma. According to TipRanks, Tsai has an average return of 13.3% and a 58.45% success rate on recommended stocks.
In another report released today, Canaccord Genuity also downgraded the stock to a Hold with a $54.00 price target.