On Monday, Piper Sandler increased the price target for Savara Inc. (NASDAQ:SVRA), a biopharmaceutical company, from $7.00 to $16.00, while maintaining an Overweight rating on the stock.
The adjustment comes as Savara's shares have soared over 100% in the past year. Piper Sandler's optimism is partly based on the upcoming IMPALA-2 study results, which are anticipated at the end of the second quarter, likely by the end of June.
The firm draws parallels with CymaBay Therapeutics (NASDAQ:CBAY), which saw its stock surge by more than 80% from the completion of enrollment in its pivotal Phase 3 RESPONSE trial to the announcement of its topline data in August of a previous year.
Savara's stock is similarly expected to gain momentum leading up to the IMPALA-2 readout and potentially beyond, into the submission of a New Drug Application (NDA).
Piper Sandler's positive outlook on Savara is reinforced by a refreshed business model that projects significant revenue growth. The firm estimates that peak sales for molgramostim, Savara's lead product candidate, could reach approximately $2.56 billion by 2039, encompassing markets in the United States, European Union, and Japan. This projection underpins the revised price target and suggests a robust commercial potential for the drug.
The analyst's note emphasizes the belief that Savara's stock has not yet peaked and outlines the potential for continued upward trajectory as key milestones are reached. The note reflects confidence in the company's progress and the market's response to upcoming clinical data.
Savara's development focuses on rare respiratory diseases, and the outcomes of the IMPALA-2 study will be a critical factor in determining the future direction of the company's lead therapy. Investors and stakeholders in Savara will be closely monitoring the developments as the end of the second quarter approaches.
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