Needham analyst Gil Blum maintained a Buy rating on Mereo Biopharma Group Plc today and set a price target of $5.00.
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Gil Blum has given his Buy rating due to a combination of factors, despite some challenges faced by Mereo Biopharma Group Plc. The decision to continue the Phase III Orbit study towards a final analysis, expected in the fourth quarter of 2025, indicates confidence in the ultimate success of setrusumab, despite missing the second interim target. This confidence is bolstered by the strong correlation between increased bone mineral density and reduced fracture rates over time, which supports the potential effectiveness of the treatment.
While the target price has been adjusted to $5 due to increased uncertainty and revised launch timelines, the overall positive outlook remains. The upcoming results from the pediatric Cosmic study, which will be reported later this year, are anticipated to provide additional insights and reinforce the current Buy rating. These elements collectively contribute to the maintained positive recommendation for Mereo Biopharma Group Plc’s stock.
In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $6.00 price target.