J.P. Morgan analyst Tessa Romero has maintained their bullish stance on UPB stock, giving a Buy rating on November 18.
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Tessa Romero’s rating is based on the promising developments surrounding Upstream Bio, Inc.’s lead therapeutic candidate, verekitug. This monoclonal antibody targets the TSLP receptor, potentially offering improvements over existing therapies through extended dosing intervals and positive effects on disease-associated biomarkers. The recent topline data from the phase 2 VIBRANT trial in CRSwNP has been encouraging, and the upcoming phase 2 VALIANT trial in severe asthma is expected to be a significant catalyst for the stock, given the large market size for asthma treatments.
Verekitug’s favorable safety profile and its effectiveness in reducing key disease-related biomarkers in asthma, which correlate with lower exacerbation rates, suggest a high likelihood of success in the ongoing trials. This potential success could lead to a substantial increase in the company’s share price, with projections reaching $40 per share or more, depending on the strength of the trial data. Overall, the maturation of verekitug’s clinical profile is seen as a primary driver for Upstream Bio’s stock performance in the mid- to long-term.
According to TipRanks, Romero is a 5-star analyst with an average return of 21.1% and a 53.33% success rate. Romero covers the Healthcare sector, focusing on stocks such as Cytokinetics, ACADIA Pharmaceuticals, and Xenon.
In another report released on November 18, Evercore ISI also initiated coverage with a Buy rating on the stock with a $40.00 price target.