Analyst David Lebowitz of Citi maintained a Hold rating on Arrowhead Pharmaceuticals, retaining the price target of $17.00.
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David Lebowitz has given his Hold rating due to a combination of factors. The recent partnership between Arrowhead Pharmaceuticals and Novartis for the ARO-SNCA, a preclinical RNAi therapeutic for synucleinopathies, including Parkinson’s disease, is a significant development. This agreement provides Arrowhead with an upfront payment of $200 million and potential milestones up to $2 billion, along with future royalties. However, the operational control will shift to Novartis after the preclinical phase, which may impact Arrowhead’s direct involvement and influence over the project.
Additionally, while there is potential for Arrowhead’s plozasiran in the severe hypertriglyceridemia market, it is still approximately two years behind competitors in a market that could be larger than anticipated. The Neutral/High Risk rating reflects uncertainties, including an expected share price return of -22.8%, suggesting caution in the short term despite promising long-term prospects.
According to TipRanks, Lebowitz is a 4-star analyst with an average return of 7.6% and a 58.02% success rate. Lebowitz covers the Healthcare sector, focusing on stocks such as Alnylam Pharma, BridgeBio Pharma, and Schrodinger.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $23.00 price target.