Promising Future for Aardvark Therapeutics: Buy Rating Backed by Strong Pipeline and Financial Health

Morgan Stanley analyst Michael Ulz has reiterated their bullish stance on AARD stock, giving a Buy rating on March 31.

Michael Ulz has given his Buy rating due to a combination of factors that highlight the promising future of Aardvark Therapeutics, Inc. The company’s pipeline is progressing well, with all clinical programs on schedule, notably the Phase 3 HERO study for ARD-101 in Prader-Willi syndrome (PWS), which is expected to yield key data in early 2026. The Phase 2 study of ARD-101 has already shown encouraging results, demonstrating a decrease in body fat and an increase in lean muscle, which supports the potential benefits of the treatment.
Additionally, the financial health of Aardvark Therapeutics is robust, with a cash reserve of approximately $74 million at the end of 2024, bolstered by proceeds from a recent IPO. This financial position is expected to sustain operations through 2027, providing a stable runway for the company to continue its clinical developments. The supportive regulatory environment, as evidenced by the recent approval of a similar treatment by the FDA, further strengthens the outlook for ARD-101, making the stock an attractive buy.

According to TipRanks, Ulz is an analyst with an average return of -8.3% and a 34.49% success rate. Ulz covers the Healthcare sector, focusing on stocks such as Viking Therapeutics, Alnylam Pharma, and Sarepta Therapeutics.

In another report released on March 31, RBC Capital also maintained a Buy rating on the stock with a $21.00 price target.