BTIG starts Moonlake at buy; PT $36

MoonLake Logo

BTIG initiated coverage of Moonlake Immunotherapeutics (NASDAQ:MLTX) with a “buy” rating and $36 price target. The stock closed at $23.70 on March 8.

“We see Moonlake’s sonelokimab (SLK) well-positioned to emerge as the best-in-class IL-17 inhibitor,” writes analyst Julian Harrison.

“To Moonlake’s benefit, there is an unusually broad set of clinical data supporting the notion that additional efficacy for the class can be realized through smaller, albumin-binding therapies, and targeting IL-17F in addition to IL-17A,” he added.

Mr. Harrison said SLK is the “first and only candidate we are aware of that combines both of these advantages in a single construct. With best-in- class efficacy in mind, Moonlake focuses on developing SLK in severe inflammation and immunology indications with blockbuster potential, where the most effective therapy available should take overwhelming preference over alternatives that may have incremental convenience at the expense of less efficacy.”

Mr. Harrison said Moonlake trading at a deep discount to SLK’s best-in-class potential and “view now as an attractive entry point ahead of several important catalysts in the IL-17 space.”