In a report released yesterday, Julian Harrison from BTIG maintained a Buy rating on Rani Therapeutics Holdings (RANI – Research Report), with a price target of $14.00.
Julian Harrison has given his Buy rating due to a combination of factors that highlight the potential of Rani Therapeutics Holdings’ RT-114 in the obesity treatment market. The RT-114, which utilizes the RaniPill technology to deliver a GLP1/2 agonist, is expected to stand out in the oral obesity treatment category due to its improved tolerability and lower manufacturing costs compared to current options. This improved tolerability is crucial, as it addresses the common issue of short half-lives and peak-to-trough variability seen in other oral treatments, potentially leading to better patient adherence.
Moreover, RT-114’s competitive edge is further strengthened by its demonstrated bioavailability comparable to subcutaneous alternatives and its less variable weight loss outcomes in preclinical studies. The large market opportunity, projected to exceed $100 billion by 2030, combined with the high discontinuation rates of existing treatments, presents a significant opportunity for RT-114 as a more tolerable and effective option. The planned Phase 1 trial in mid-2025 is expected to provide early signals of efficacy, supporting the potential for RT-114 to become a preferred treatment option in this growing market.
In another report released on March 27, Stifel Nicolaus also maintained a Buy rating on the stock with a $8.00 price target.