Jason McCarthy, an analyst from Maxim Group, reiterated the Buy rating on MetaVia (MTVA – Research Report). The associated price target remains the same with $6.00.
Jason McCarthy’s rating is based on several key considerations regarding MetaVia’s recent data release on DA-1726. Despite the initial market reaction, which saw a significant drop in MTVA shares, McCarthy views the early-stage study results as promising. The data indicated potential for DA-1726 as an effective weight loss solution, with a differentiated safety profile that could offer advantages over existing treatments.
McCarthy emphasizes that the early weight loss results should not overshadow the overall positive data and the potential for continued weight loss as the study progresses. The absence of a plateau effect and the ongoing development into Part 3 of the study, targeting patients intolerant to other treatments, further supports the Buy rating. The focus on safety and tolerability, alongside weight loss efficacy, positions DA-1726 as a potentially superior option in the weight management market. Therefore, McCarthy believes the market’s reaction was an overreaction, and the stock remains a strong buy opportunity.
According to TipRanks, McCarthy is an analyst with an average return of -25.4% and a 21.33% success rate. McCarthy covers the Healthcare sector, focusing on stocks such as SELLAS Life Sciences Group, Actinium Pharmaceuticals, and Medicus Pharma Ltd.
In another report released yesterday, H.C. Wainwright also maintained a Buy rating on the stock with a $12.00 price target.