Aytu BioPharma initiated with a Buy at Lake Street

Lake Street initiated coverage of Aytu BioPharma (AYTU) with a Buy rating and $8 price target The firm beleives new entrants can make a dent in the crowded antidepressant market, particularly those that have some level of differentiation, the analyst tells investors in a research note. The firm’s research indicates strong interest in Aytu’s EXXUA as an alternative for patients with major depressive disorder, and says the launch will materially alter Aytu’s financial profile, powering revenues to record levels already in FY27. Lake Street adds that substantial upside remains as generic overhang is resolved “one way or the other” and the EXXUA launch performance ramps at or above expectations.