J.P. Morgan analyst Priyanka Grover has maintained their bullish stance on MREO stock, giving a Buy rating yesterday.
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Priyanka Grover has given his Buy rating due to a combination of factors related to Mereo Biopharma’s risk‑reward profile following the recent clinical update. While the phase 3 ORBIT and COSMIC trials of setrusumab in osteogenesis imperfecta failed to show a statistically significant reduction in fracture rates versus controls, the stock is already trading around its cash value, limiting further downside in her view. She also notes that the safety profile remained acceptable and that the company is quickly scaling back pre-commercial and manufacturing expenses, which should help preserve cash and extend the runway.
Priyanka Grover’s rating is based on the potential for future value creation from several upcoming catalysts and pipeline opportunities. Management plans to present more detailed data, including age-based subgroup analyses and evaluation of how robust bone mineral density gains may translate into clinical benefit, at the 2026 J.P. Morgan Healthcare Conference, which could reshape perceptions of setrusumab’s utility, particularly in pediatric patients. In addition, Mereo is still engaged in partnering discussions for its alvelestat program, which could unlock non‑dilutive funding or strategic value. Taken together, the current depressed valuation, cost adjustments, and remaining pipeline and data catalysts underpin her Buy stance despite the recent disappointment.
In another report released yesterday, Cantor Fitzgerald also maintained a Buy rating on the stock with a $3.00 price target.