Promising Developments in Weight Management Propel Buy Rating for Structure Therapeutics

William Blair analyst Andy Hsieh has reiterated their bullish stance on GPCR stock, giving a Buy rating on May 2.

Andy Hsieh has given his Buy rating due to a combination of factors related to Structure Therapeutics, Inc.’s promising developments in the field of weight management. The company is advancing its small-molecule GLP-1 receptor agonist, aleniglipron, which is expected to play a crucial role in chronic weight management. This is particularly significant given the recent success of a similar compound, orforglipron, in achieving weight loss in patients with obesity and type-2 diabetes, a challenging demographic to treat.
Furthermore, the structural similarities between aleniglipron and orforglipron suggest a de-risked clinical development pathway for Structure Therapeutics. With the company’s shares trading at an enterprise value of approximately $700 million, the potential for positive outcomes from upcoming Phase IIb trial results presents a favorable risk/reward scenario. These factors collectively underpin Andy Hsieh’s optimistic outlook and Buy rating for the stock.

In another report released on May 2, Citi also initiated coverage with a Buy rating on the stock with a $60.00 price target.