Wolfe upgrades MoonLake Immunotherapeutics ahead of sonelokimab data

Wolfe Research analyst Andy Chen upgraded MoonLake Immunotherapeutics (MLTX) to Outperform from Peer Perform with a $61 price target While the firm says it “could not easily convince ourselves” that MoonLake would see a greater than 25% delta on efficacy, which it says “would be a homerun scenario for the stock for beating the buyside bar,” with its “more defensible” base case at 24% delta on efficacy, the firm notes that it lands closer to the 25% “bull bar” than the 22% “bear bar.” The firm sees 24% as “a fundamentally good scenario where the drug is clearly differentiated from UCB’s Bimzelx on efficacy” and argues that after the September event, good data “should replenish the M&A premium and drive upward revisions on the back of sonelokimab’s commercial advantage.”