Analyst Mani Foroohar from Leerink Partners reiterated a Hold rating on Arrowhead Pharmaceuticals and increased the price target to $23.00 from $21.00.
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Mani Foroohar has given his Hold rating due to a combination of factors influencing Arrowhead Pharmaceuticals’ current and future prospects. The recent collaboration agreement with Novartis for the ARO-SNCA program and other potential targets provides an upfront payment and potential milestone revenues, which are positive financial developments. However, the early stage of the ARO-SNCA program means that these revenues are not yet certain, and the preclinical data available is limited.
Additionally, while the deal strengthens Arrowhead’s financial position, a significant concern remains about the company’s balance sheet, which has been a point of skepticism among investors. The collaboration does alleviate some operational and development risks by transferring them to Novartis, but the focus remains on Arrowhead’s ability to advance its late-stage pipeline effectively. These mixed factors contribute to the decision to maintain a Hold rating, reflecting a cautious but optimistic outlook.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $23.00 price target.