TD Cowen analyst Stacy Ku has maintained their bullish stance on CNTA stock, giving a Buy rating yesterday.
Stacy Ku has given her Buy rating due to a combination of factors including the promising Phase I proof of concept results for Centessa Pharmaceuticals’ ORX750, which suggest a potential best-in-class profile. The ORX750 has shown competitive efficacy in promoting wakefulness and has demonstrated clean tolerability, which is crucial for its success in the market. The anticipated Phase IIa results for ORX750 in treating narcolepsy type 1, narcolepsy type 2, and idiopathic hypersomnia are expected to further validate its potential, with experts optimistic about its transformative impact in addressing high unmet needs in these areas.
Additionally, the ORX750 is uniquely positioned with differentiated dosing flexibility and a lower incidence of adverse effects compared to competitors, enhancing its appeal. The potential market opportunity for ORX750 is significant, with projections of over $2.5 billion in peak sales, driven by its efficacy and safety profile. The competitive landscape, including other OX2R agonists, supports the potential for ORX750 to capture a substantial market share, particularly in patients with normal orexin levels requiring higher dosing. These factors collectively underpin Stacy Ku’s Buy rating for Centessa Pharmaceuticals.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $27.00 price target.