A new analyst note was the key factor behind the mini-rally in Shattuck Labs (NASDAQ: STTK) stock on the last trading day of the week. The clinical-stage biotech’s shares closed the day almost 5% higher, thanks mainly to that research.
Upside potential
Early Friday morning, Brian Cheng of JPMorgan Chase‘s J.P. Morgan published his inaugural take on Shattuck. He rated the stock an overweight (read: buy) at a price target of $10 per share. That’s nearly 35% higher than the biotech’s most recent closing level.
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According to reports, Cheng’s bullish evaluation focuses on Shattuck’s lead drug candidate, SL-325, a first-in-class antagonist antibody presently being developed to treat inflammatory bowel disease (IBD).
In the analyst’s view, the healthy volunteer data the company reported from a recent clinical trial suggested the drug had a cleaner safety profile and stronger target engagement than similar medications. Given that, it has significant potential if Shattuck can successfully develop it and earn regulatory approval.
Continued momentum
A promising drug candidate from the beginning, SL-325 continues to gather momentum. While Shattuck still has some distance to go in the often-grueling development process — the drug is slated to enter a Phase 2 trial in the third quarter — the lights so far seem to be green.
This makes the stock one to watch and, for those with some tolerance for risk in the often hit-or-miss biotech sector, one to consider buying.
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