Analyst Tim Anderson of Bank of America Securities reiterated a Buy rating on Aardvark Therapeutics, Inc. (AARD – Research Report), boosting the price target to $26.00.
Tim Anderson has given his Buy rating due to a combination of factors that highlight a positive outlook for Aardvark Therapeutics, Inc. The recent FDA approval of a competitor’s drug, Vykat XR, for treating hyperphagia in Prader-Willi syndrome (PWS) patients establishes a favorable regulatory precedent, which bodes well for Aardvark’s own product, ARD-101. This approval, despite mixed data, suggests a more receptive regulatory environment for treatments in this area.
Additionally, the high pricing of Vykat XR, set at approximately $466k per year, sets a benchmark that could benefit Aardvark’s pricing strategy for ARD-101. The differentiation in ARD-101’s mechanism of action compared to Vykat XR also provides a competitive edge. These factors, combined with the updated price objective of $26 per share, reflect a de-risking of Aardvark’s prospects and support the Buy rating.
In another report released on March 10, Cantor Fitzgerald also initiated coverage with a Buy rating on the stock with a $50.00 price target.