BMO Capital analyst Evan Seigerman maintained a Buy rating on Scholar Rock Holding (SRRK – Research Report) today and set a price target of $57.00.
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Evan Seigerman’s rating is based on the potential of Scholar Rock’s lead drug, apitegromab, to show significant clinical benefits in ongoing trials. The Phase 2 EMBRAZE trial is expected to demonstrate improvements in body composition, particularly in muscle preservation, when used in combination with tirzepatide in overweight and obese patients. This could provide proof of concept data for apitegromab in obesity, although broader questions about its development in this area remain.
Evan Seigerman anticipates that the trial results will show either a directional improvement in HbA1c or incremental weight loss over tirzepatide monotherapy, which would support the development of SRK-439. The potential for apitegromab to be the first effective and safe myostatin inhibitor, offering significant motor function improvement to SMA patients, also contributes to the positive outlook. The Moderate Bull Case scenario, which is considered most likely, suggests a substantial rise in SRRK shares, reinforcing the Buy rating.
In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $52.00 price target.