AKRO - Akero upgraded at Morgan Stanley on NASH prospects

Morgan Stanley raised its recommendation on Akero Therapeutics ( NASDAQ: AKRO ) to Overweight from Equal Weight on Friday, citing the company’s potential against liver disease nonalcoholic steatohepatitis (NASH)

The analyst Michael Ulz argues that the Phase 2 data Akero ( AKRO ) posted for its lead asset efruxifermin (EFX) in pre-cirrhotic NASH “indicated a market leading efficacy profile.”

However, the firm remained nonplussed with no near-term catalysts and given an extended timeline for Phase 3 data.

“That said, in 2023, we see multiple key catalysts for EFX that could drive upside,” Ulz wrote, highlighting its upcoming mid-stage readouts in combination with a GLP-1 agonist and more advanced cirrhotic NASH expected in Q2 and Q4 this year, respectively.

Morgan Stanley raising the price target on Akero ( AKRO ) to $65 from $40 also points to a favorable shift in investor sentiment in NASH space after rival NASH drug developer Madrigal Pharma ( MDGL ) shared positive Phase 3 data for its candidate resmetirom in December.

Read: Seeking Alpha contributor Harrier Capital issued a Sell rating on Akero ( AKRO ), citing, among other things, the safety profile of EFX.

For further details see: