Shattuck Labs price target lowered to $2 from $4 at Leerink

Leerink analyst Faisal Khurshid lowered the firm’s price target on Shattuck Labs (STTK) to $2 from $4 and keeps an Outperform rating on the shares after the company reported Q2 earnings and provided a pipeline update including expected Phase 1 trial initiation for SL-325 this quarter. The firm expects this to be a pivotal moment for Shattuck’s turnaround story as the company transitions to a clinical-stage company, and thinks this should support new interest in its first-in-class DR3 approach in inflammatory bowel disease. Leerink notes that its change in price target is driven by additional shares outstanding, with minimal change in its other key modeling assumptions.