BMO Capital analyst Kostas Biliouris downgraded the rating on Verve Therapeutics (VERV – Research Report) to a Hold today, setting a price target of $13.50.
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Kostas Biliouris has given his Hold rating due to a combination of factors related to the potential acquisition of Verve Therapeutics by Eli Lilly (LLY). The definitive agreement between the two companies, valued at up to $1.3 billion, is expected to close smoothly by the third quarter of 2025. This anticipated acquisition has influenced the downgrade of Verve’s stock from Outperform to Market Perform, reflecting the current market conditions and the terms of the deal.
Another factor contributing to the Hold rating is the uncertainty surrounding Verve’s previously guided milestones for the second half of 2025, which may not be achieved before the deal closes. Additionally, the initiation of the VERVE-102 Phase III trial in ASCVD by 2028 is expected to trigger a contingent value right (CVR) payment of $3 per share, with a 70% probability. This potential payment is contingent upon the dosing of ASCVD patients, which adds an element of risk and uncertainty to the stock’s future performance.
According to TipRanks, Biliouris is an analyst with an average return of -11.7% and a 33.20% success rate. Biliouris covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, Legend Biotech, and Verve Therapeutics.