Rezolute (RZLT – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Julian Harrison from BTIG maintained a Buy rating on the stock and has a $15.00 price target.
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Julian Harrison has given his Buy rating due to a combination of factors surrounding Rezolute’s promising developments in treating congenital hyperinsulinism (cHI). The sunRIZE Phase 3 trial of ersodetug is showing significant progress, particularly with the expansion to include infants as young as three months. This is crucial as early diagnosis and treatment are vital, with 90% of cHI patients identified within their first year. The safety and dose exposure results have been positive, leading to the opening of the double-blind portion of the study for younger patients, which indicates a robust potential for ersodetug to emerge as a leading treatment option.
Currently, there is a substantial need for effective treatment options in cHI, as existing first-line treatments such as diazoxide have limitations and adverse effects, with a significant portion of patients not responding. The initial target market for ersodetug is substantial, with over 1,500 patients in the U.S. alone who are unresponsive to current therapies. The trial’s design and the potential positive outcomes in its efficacy endpoints provide a strong basis for the drug’s commercial success. Coupled with the NPV SOTP valuation analysis, these factors collectively support the Buy rating, reflecting the potential growth and impact of Rezolute’s developments in the cHI treatment landscape.
In another report released yesterday, JMP Securities also reiterated a Buy rating on the stock with a $8.00 price target.