Undervalued Obesity Innovator: Justifying a Buy on Aardvark’s Dual Rare-Disease and Mainstream Metabolic Opportunity

In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Aardvark Therapeutics, Inc., with a price target of $40.00.

Ram Selvaraju has given his Buy rating due to a combination of factors tied to Aardvark’s differentiated position in an increasingly crowded obesity market. He believes growing price pressure and margin compression on existing GLP-1 therapies create strong demand for complementary treatments, and views Aardvark’s ARD-101–based combination (ARD-201) as well positioned to enhance and sustain weight loss outcomes alongside current standard drugs.

Selvaraju also emphasizes that Aardvark’s current valuation stands far below those of comparable obesity-focused companies and recent M&A benchmarks, despite having a lead asset in pivotal studies for Prader-Willi syndrome and a mid-stage program aimed at broader obesity and cardiometabolic indications. In his assessment, this steep discount is not justified given the company’s dual exposure to both rare hyperphagic disorders and the large mainstream obesity and metabolic markets, supporting a 12‑month price target of $40.

Selvaraju covers the Healthcare sector, focusing on stocks such as Vanda, Coya Therapeutics, Inc., and Idorsia Ltd. According to TipRanks, Selvaraju has an average return of 23.5% and a 57.23% success rate on recommended stocks.

In another report released on February 4, TipRanks – Google also initiated coverage with a Buy rating on the stock with a $14.50 price target.