Palvella Therapeutics initiated with an Outperform at Scotiabank

Scotiabank analyst Louise Chen initiated coverage of Palvella Therapeutics (PVLA) with an Outperform rating and $50 price target. The firm says Palvella is its top pick in Biotechnology, as the firm believes Palvella has the potential to be the next Krystal Biotech (KRYS), which has a $5.4B market cap versus its $200M market cap, the analyst tells investors in a research note. Scotiabank sees a good opportunity to own Palvella ahead of the Phase 3 SELVA and Phase 2 TOVIA readouts that could establish it as a leading rare genetic skin disease company. The firm sees positive data from the studies and says the products have more than $1B of sales potential.