Analyst Michael Ulz of Morgan Stanley maintained a Sell rating on BioAge Labs, Inc. (BIOA – Research Report), with a price target of $5.00.
Michael Ulz has given his Sell rating due to a combination of factors affecting BioAge Labs, Inc. The primary reason for this rating is the recent discontinuation of their lead program, azelaprag, due to safety concerns related to liver transaminitis observed in some patients. This setback has resulted in the company shifting focus to developing next-generation APJ agonists, which are still in the early stages of development and carry inherent risks.
Additionally, the company’s valuation is based on a discounted cash flow analysis with a $5 price target, reflecting a low probability of success for their current pipeline. While there is potential for upside if the next-generation APJ agonists or the NLRP3 inhibitor, BGE-102, progress faster than expected, significant risks remain if these programs fail. These factors contribute to the cautious outlook and the Underweight rating assigned by Michael Ulz.
Ulz covers the Healthcare sector, focusing on stocks such as Alnylam Pharma, Sarepta Therapeutics, and Viking Therapeutics. According to TipRanks, Ulz has an average return of -5.1% and a 35.04% success rate on recommended stocks.
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