On Friday, Morgan Stanley (NYSE:MS) adjusted its stance on shares of Third Harmonic (NASDAQ:HLIT) Bio (NASDAQ:THRD), upgrading the stock from Equalweight to Overweight. The firm also increased its price target on the biotechnology company's shares to $20.00, a significant rise from the previous target of $12.00.
The upgrade follows Third Harmonic Bio's announcement of its rapid progress with THB335, a drug currently in Phase 1 trials, with data now expected to be released in the first quarter of 2025, an advancement from the initially projected first half of the same year. This development, combined with the recent decline in the company's share price, led to the reassessment by Morgan Stanley.
The analyst from Morgan Stanley highlighted the potential of the upcoming data to provide early de-risking for the stock. With the new price target set at $20.00, the firm shows confidence in the future performance of Third Harmonic Bio, indicating a positive outlook for the company's shares.
Third Harmonic Bio has been focusing on the development of THB335, and the anticipated data release in the first quarter of 2025 is now a key milestone for investors to watch. The company's shares have experienced volatility, but the latest developments could signal a shift in investor sentiment.
Morgan Stanley's revised price target and stock rating reflect a more bullish view on Third Harmonic Bio's prospects, suggesting that the firm sees a favorable risk-reward balance at the current stock levels. The company's progress and upcoming data release are now central to its valuation and the expectations of market analysts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.