Tiago Fauth, an analyst from Wells Fargo, maintained the Buy rating on Insmed. The associated price target was raised to $130.00.
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Tiago Fauth has given his Buy rating due to a combination of factors that highlight the potential of Insmed’s stock. The upcoming approval and launch of brenso in bronchiectasis, along with anticipated clinical developments for the rest of the year, present a favorable risk/reward scenario for investors. Despite the current low expectations, the market opportunity is significant, particularly with the CRSsNP patient population, which could potentially lead to peak sales in the $3 billion range.
Furthermore, the management’s optimistic outlook on the clinical data, which appears to exceed the minimum required efficacy, adds to the positive sentiment. The mechanism of action targeting NSPs in CRSsNP patients is supported by expert opinions and preclinical studies, suggesting a reduction in inflammation and disease burden. However, while there are uncertainties due to limited direct evidence and trial heterogeneity, the overall potential justifies the Buy rating, with a revised price target reflecting this optimism.
In another report released on July 17, Morgan Stanley also maintained a Buy rating on the stock with a $108.00 price target.