Shattuck Labs: Buy Rating Affirmed on Strong Q1 Financials and Promising Clinical Milestones

Analyst Joseph Pantginis from H.C. Wainwright reiterated a Buy rating on Shattuck Labs (STTK – Research Report) and keeping the price target at $28.00.

Joseph Pantginis has given his Buy rating due to a combination of factors surrounding Shattuck Labs’ financial performance and clinical development milestones. Pantginis recognizes that Shattuck Labs posted better-than-expected financial results for the first quarter of 2024, with an earnings per share (EPS) that surpassed both the firm’s and the consensus estimates. Moreover, the company’s substantial cash position is anticipated to sustain operations well into 2026, which extends beyond the expected results from ongoing Phase 1 clinical trials. This strong financial footing is a key element in Pantginis’s positive outlook on the stock.

Furthermore, Pantginis’s recommendation is bolstered by the upcoming clinical readouts from Shattuck’s ARC clinical candidate, SL-172154, which is being tested in several trials for cancers with high unmet medical needs. The analyst highlights the potential for these trials to validate the mechanism of action (MoA) of SL-172154, particularly in hard-to-treat cancers such as platinum-resistant ovarian cancer and acute myeloid leukemia. With key efficacy data expected to be presented at the EHA 2024 Annual Meeting and enrollment for additional trials set to begin, Pantginis views these upcoming milestones as potential catalysts for the company’s stock performance.

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Shattuck Labs (STTK) Company Description:

Shattuck Labs Inc is a clinical-stage biotechnology company pioneering the development of dual-sided fusion proteins as an entirely new class of biologic medicine. The company’s product candidate, SL-172154, has been rationally designed to simultaneously inhibit the CD47/SIRPa checkpoint interaction to restore an anti-tumor immune response and to activate the CD40 costimulatory receptor to bolster an immune response. Its product candidate, SL-279252, which is being developed in collaboration with Takeda Pharmaceuticals, or Takeda, has been rationally designed to simultaneously inhibit the PD-1/PD-L1 interaction and activate the OX40 receptor.