On Monday, Aerovate Therapeutics Inc (NASDAQ:AVTE) saw its price target significantly increased by Jefferies from $21.00 to $65.00. The firm maintained a Buy rating on the biopharmaceutical company's stock. This adjustment comes as Aerovate prepares for a pivotal moment in the development of its lead candidate, AV-101, an inhaled version of imatinib designed to treat pulmonary arterial hypertension (PAH).
The optimism from Jefferies is rooted in the upcoming Phase IIB data expected in June 2024. The firm anticipates substantial upside potential for Aerovate's shares if the company can show statistically significant reductions in pulmonary vascular resistance (PVR) at the 24-week mark. The data is seen as a major derisking event for Aerovate's lead drug candidate.
Jefferies' analysis suggests that the current market capitalization of $750 million for Aerovate does not fully reflect the potential positive outcome of the upcoming trial results. The firm believes that achieving a more than 20% placebo-adjusted PVR decline would not only be solid but also indicate that AV-101 could be a competitive option for treating PAH, warranting a rise in the stock's value.
The report by Jefferies indicates a strong confidence in Aerovate's ability to meet or exceed the performance of sotatercept, another treatment for PAH. The firm's maintained Buy rating and increased price target reflect their view that the upcoming clinical data could significantly benefit the stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.