Shattuck Labs transferred with Buy rating at Needham

Needham analyst Joseph Stringer put a Buy rating and $14 price target on Shattuck Labs (STTK) following a transfer of coverage. The firm previously had a Hold rating on the shares. The analyst is bullish on Shattuck’s lead asset SL-325, an anti-DR3 antibody in Phase 1 development for inflammatory bowel disease. The company’s DR3-targeting approach is “highly differentiated, “and SL-325 has the potential for a better efficacy profile compared to anti-TL1A antibodies, the analyst tells investors in a research note. Needham sees a “highly favorable” risk/reward at current share levels.