On Wednesday, Canaccord Genuity (TSX:CF) expressed continued optimism for Akero Therapeutics (NASDAQ:AKRO) stock, maintaining a Buy rating and a $56.00 price target.
The firm's stance is fueled by the potential of Akero's drug candidate, Efruxifermin, which is currently in development for the treatment of metabolic-associated steatohepatitis (MASH).
The firm highlighted the anticipation surrounding the upcoming 96-week data readout from the Phase IIb SYMMETRY study, expected in the first half of 2025. Canaccord Genuity believes that this data will be a significant milestone for Akero, potentially leading to a positive outcome on fibrosis treatment in the second half of 2025.
According to the firm, Efruxifermin stands out as one of the most promising drug candidates in the MASH space, as indicated by discussions and polling of physicians. The firm's confidence in the drug's prospects is reflected in their decision to reiterate their Buy rating and price target.
The focus is now on the long-term results of the SYMMETRY study, which Canaccord Genuity suggests could lead to positive results for Akero, particularly regarding the treatment's impact on fibrosis after a prolonged duration.
Investors and industry observers are likely to closely monitor Akero's progress, especially as the company approaches the next major inflection point highlighted by Canaccord Genuity. The firm's reiterated price target of $56.00 remains a key indicator of their bullish outlook on Akero's stock performance.
In other recent news, Akero Therapeutics has been the subject of analyst attention, with Wolfe Research initiating coverage on the company with an Outperform rating. The firm's positive outlook is based on the anticipated market introduction of competing NASH treatments and Akero's potential to reach approximately $3 billion in peak revenue by 2040 for its F2 and F3 NASH treatments. Wolfe Research also views Akero as a strong candidate for mergers and acquisitions activity due to its promising pipeline.
Evercore ISI and Canaccord Genuity have both adjusted their price targets for Akero Therapeutics, with Evercore reducing its target to $38.00 and Canaccord adjusting its target to $56.00.
These adjustments were driven by reassessments of the company's financial model and updated projections for fiscal year 2024 operating expenses. Despite these changes, both firms maintain positive ratings on the stock.
In a recent development, Akero Therapeutics announced the appointment of Scott Gangloff as Chief Technology Officer, highlighting the company's commitment to advancing its lead product candidate, efruxifermin, through Phase 3 clinical trials.
Lastly, BofA Securities reinstated coverage on Akero Therapeutics, assigning the stock a Neutral rating with a price target set at $30.00, noting several challenges ahead including concerns regarding the drug's safety and an intensifying competitive landscape in the NASH treatment market.
InvestingPro Insights
As Akero Therapeutics (NASDAQ:AKRO) garners analyst optimism, it's important to consider some key financial metrics and market performance data. The company holds a market capitalization of $1.62 billion, which speaks to its size within the biotech sector. Notably, Akero's stock has experienced a significant return over the last week with a 12.7% increase, and even stronger over the last month, posting a 19.24% gain. This suggests a current upward trajectory in investor sentiment, which aligns with Canaccord Genuity's positive outlook.
On the financial health side, one of the InvestingPro Tips notes that Akero holds more cash than debt on its balance sheet, a sign of financial stability that may reassure investors. Additionally, the company's liquid assets exceed short-term obligations, providing further evidence of its ability to manage financial commitments in the near term. However, it's worth noting that analysts do not anticipate the company will be profitable this year, and a net income drop is expected. These factors may need to be weighed against the potential of Efruxifermin and the upcoming clinical study results.
For those looking to delve deeper into Akero's financials and market performance, there are additional InvestingPro Tips available that could provide further insights. Interested readers can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, where more than 9 additional tips are listed for Akero Therapeutics.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.