Stifel launched coverage of Concert Pharmaceuticals (NASDAQ:CNCE) with a “buy” rating and 12-month target price of $23. The stock closed at $11.20 on Friday.
“Our bullish thesis centers on two key pipeline assets: AVP-786 in Phase 3 trials for Alzheimer’s agitation and CTP-543 in Phase 1 studies for alopecia areata,” writes analyst Adam Walsh.
“Both drugs have blockbuster potential in our view, targeting unmet medical needs with no approved treatments,” he added.
However, Mr. Walsh said he is cautious on CTP-656 in cystic fibrosis. “Robust FEV1 increases in upcoming Phase 2 trials would be needed for us to potentially become more constructive on the asset,” he pointed out.
He said his $23 target price is almost entirely derived from AVP-786 and CTP-543. “Success with CTP-656, further advancement of partnered products, or the signing of additional collaboration agreements would represent upside potential,” Mr. Walsh added.
