Roth starts Stealth BioTherapeutics at buy; PT $9

Stealth BioTherapeutics Logo

Roth Capital Partners launched coverage of Stealth BioTherapeutics (NASDAQ:MITO) with a “buy” rating and $9 price target. The stock closed at $1.59 on April 13.

Stealth is focused on developing drugs targeted for rare diseases and common age-related disease that stem from dysfunction of the mitochondrial.

Analyst Yasmeen Rahimi writes that the company’s lead drug candidate is elamipretide, a mitochondrial-targeted peptide that the company has amassed a compelling clinical case for the use of in Barth, a brutal rare disease where damaged mitchondria lead to a failing heart.

“Elamipretide has shown a convincing case for stabilizing a key mitochondria membrane component, cardiolipin, thus leading to statistically significant gains in functional assessment and cardiac output in the open-label portion (36 weeks) of the Phase 2/3 TAZPOWER trial,” she added.

“With what we believe is a convincing demonstration of superiority for TAZPOWER’s 36-week open label extension data, compared to a matched natural history cohort, Stealth is a significantly undervalued biotech as it awaits feedback from the FDA in mid-2020 about an NDA filing in Barth syndrome,” Mr. Rahimi said.

Sign up for the BioTuesdays weekly newsletter

Get the latest news on the healthcare industry’s corporate and clinical developments, executive moves, and market updates. Every Tuesday, in your inbox.