Cantor starts Lyra Therapeutics at OW; PT $15

Cantor Fitzgerald initiated coverage of Lyra Therapeutics (NASDAQ:LYRA) with an “overweight” rating and price target of $15. The stock closed at $6.07 on May 23.

Lyra is a clinical-stage company developing medicines designed to target ear, nose and throat diseases. 

“The peak sales potential of Lyra’s product pipeline is under-appreciated, in our view, and we expect upward earnings estimate revisions to potentially move Lyra’s stock higher,” writes analyst Louise Chen. 

She said upward earnings estimate revisions could be driven by the LYR-220 Part 1 readout for its Phase 2 BEACON study around year-end 2022, and the LYR-210 ENLIGHTEN I top-line Phase 3 readout around the end of 2023. 

With a portfolio of products to treat chronic rhinosinusitis (CRS) patients that are both surgically-naïve with LYR-210, and post-surgical with LYR-220, Ms. Chen said Lyra is well-positioned to take share in what the company estimates to be a $6-billion target addressable market for CRS in the U.S. 

In addition, she noted that Lyra has a cash runway into mid-2024.