Hold Rating on Verve Therapeutics Acquisition by Eli Lilly: Fair Valuation with Low Competing Bid Potential

Verve Therapeutics (VERV – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Mitchell Kapoor from H.C. Wainwright downgraded the rating on the stock to a Hold and gave it a $13.50 price target.

Mitchell Kapoor has given his Hold rating due to a combination of factors surrounding the acquisition of Verve Therapeutics by Eli Lilly. The acquisition agreement involves Eli Lilly purchasing all shares of Verve for $10.50 per share in cash, with an additional contingent value right (CVR) worth up to $3.00 per share, culminating in a total offer of up to $13.50 per share. This offer represents a significant premium over the recent average trading price, providing a strong validation for the genetic medicines sector, which has faced challenges in recent years.
Kapoor’s Hold rating reflects the belief that the acquisition price fairly values Verve’s potential, including the CVR, which is contingent on future clinical trial milestones. The transaction is expected to close in the third quarter of 2025, with the Verve board recommending shareholders accept the offer. Additionally, the likelihood of competing bids is low due to Eli Lilly’s strong market position and financial capacity, reducing the potential for a higher offer. The Hold rating considers these factors, along with the risks associated with the transaction’s completion and the advancement of Verve’s clinical programs.

Kapoor covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, Summit Therapeutics, and Halozyme. According to TipRanks, Kapoor has an average return of -19.1% and a 31.07% success rate on recommended stocks.

In another report released yesterday, Canaccord Genuity also downgraded the stock to a Hold with a $13.00 price target.