Morgan Stanley analyst Michael Ulz has reiterated their neutral stance on THRD stock, giving a Hold rating yesterday.
Michael Ulz has given his Hold rating due to a combination of factors related to Third Harmonic Bio, Inc.’s current strategic and financial position. The company is in the midst of preparing for a Phase 2 study of their drug THB335 for chronic spontaneous urticaria, with a potential start date in mid-2025. However, they are also exploring strategic alternatives, such as strategic transactions or business combinations, to enhance shareholder value.
Despite the promising Phase 1 data for THB335, which showed a range of dose-dependent tryptase reductions, safety concerns at higher doses have led the management to focus on moderate dosing and seek a strategic partner for further development. Additionally, the company’s decision to restructure, including a significant workforce reduction, reflects a cautious approach. With a strong cash position expected to support operations through 2026, the Hold rating reflects a wait-and-see stance until more clarity on strategic options and future directions is available.
Ulz covers the Healthcare sector, focusing on stocks such as Viking Therapeutics, Alnylam Pharma, and Sarepta Therapeutics. According to TipRanks, Ulz has an average return of -5.9% and a 35.56% success rate on recommended stocks.
In another report released yesterday, Stifel Nicolaus also downgraded the stock to a Hold with a $5.00 price target.