On Monday, BMO (TSX:BMO) Capital Markets updated its outlook on 4D Molecular Therapeutics (NASDAQ:FDMT), increasing the price target to $70 from the previous $50, while maintaining an Outperform rating on the stock. The adjustment follows the recent Phase II results of the 4D-150 program, which aligned with investor expectations and led to a significant surge in FDMT's stock value.
The analyst from BMO Capital expressed confidence in the company's gene therapy platform and the management's proven track record. The success observed in the treatment of wet Age-related Macular Degeneration (AMD (NASDAQ:AMD)) is anticipated to be replicated across other diseases such as Diabetic Macular Edema (DME), Geographic Atrophy (GA), Cystic Fibrosis (CF), and Alpha-1 Antitrypsin Deficiency (AATD), which could contribute to the company's growth trajectory.
Looking ahead, the analyst highlighted several potential catalysts for 4D Molecular Therapeutics in 2024, including data releases, partnerships, and regulatory milestones that could provide significant upside for the company. In light of these developments, BMO Capital has raised the probability of success (PoS) for the wet AMD program, leading to the revised $70 price target.
The firm's analyst concluded by selecting FDMT as their top pick for the first half of 2024, underscoring the firm's positive outlook on the stock's performance.
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