Analyst Matthew Caufield of H.C. Wainwright reiterated a Buy rating on Surrozen (SRZN – Research Report), retaining the price target of $32.00.
Matthew Caufield has given his Buy rating due to a combination of factors including Surrozen’s strategic shift in focusing their Wnt signaling platform towards ophthalmology and retinopathy opportunities. This pivot follows the discontinuation of their former lead candidate, SZN-043, which did not demonstrate sufficient clinical benefit in its Phase 1b trial for severe alcohol-associated hepatitis. The company is now concentrating on leveraging the Wnt pathway for tissue-specific treatments in degenerative ophthalmic diseases, supported by a strategic partnership with Boehringer Ingelheim for the development of SZN-413 in retinal vascular-associated diseases.
Furthermore, Surrozen’s internal preclinical pipeline, which includes candidates like SZN-8141 and SZN-8143, targets conditions such as wet age-related macular degeneration and diabetic macular edema by modulating Wnt signaling. This approach has shown promise in preclinical models, indicating potential for normal retinal vessel regrowth and suppression of pathological growth. The company’s focus on ophthalmology, along with recent industry validations of the Wnt pathway by major acquisitions, strengthens the outlook for Surrozen’s innovative treatments, justifying the Buy rating and a price target of $32.
Caufield covers the Healthcare sector, focusing on stocks such as 4D Molecular Therapeutics, Opthea Limited Sponsored ADR, and Mineralys Therapeutics, Inc.. According to TipRanks, Caufield has an average return of -15.2% and a 27.52% success rate on recommended stocks.