Wells Fargo analyst Derek Archila maintained a Buy rating on Morphic Holding (MORF – Research Report) yesterday and set a price target of $64.00.
Derek Archila has given his Buy rating due to a combination of factors concerning Morphic Holding’s progress and potential in their pharmaceutical developments. Archila believes that Morphic Holding’s lead candidate, MORF-057, has a reduced risk profile in the treatment of ulcerative colitis (UC), with expectations for positive outcomes from the Phase 2b trials set for the first half of 2025. He anticipates that the company’s stock value will rise as it approaches the trial readouts, driven by the promising data from ongoing clinical studies.
Furthermore, Archila’s assessment includes Morphic Holding’s expansion plans into the inflammation and immunology space with oral programs targeting IL-23 and TL1A, which could synergize with MORF-057 in treating inflammatory bowel disease (IBD). Although these are early-stage developments, he finds the biological targets promising. His report also considers the company’s solid financial position, with enough cash to sustain operations well into the second half of 2027, which covers the critical periods of clinical trials for both UC and Crohn’s disease (CD). Despite recognizing a short-term lack of catalysts, Archila sees the stock’s year-to-date performance and valuation as indicative of further upside potential.
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Morphic Holding (MORF) Company Description:
Morphic Holding, Inc. operates as a biopharmaceutical company, which engages in the research and development of oral small-molecule integrin therapeutics. It operates a Morphic integrin technology platform, MInT platform, to create a broad pipeline of programs across a variety of therapeutic areas. The company was founded by Timothy A. Springer in August 2014 and is headquartered in Waltham, MA.
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