89bio price target lowered to $27 from $34 at RBC Capital

RBC Capital lowered the firm’s price target on 89bio (ETNB) to $27 from $34 and keeps an Outperform rating on the shares. Data from Akero Therapeutic’ (AKRO) similar FGF21 in cirrhotic F4 patients look disappointing on efficacy and showed some safety signals, highlighting some risks for the class in NASH drug development, the analyst tells investors in a research note. The firm adds however that 89bio’s pegoza could still work in this sickest population over time, and there may be reasons pegoza could perform better. RBC further notes that while the price target cut reflects increased risk, the firm still sees 89bio shares undervaluing pegoza’s potential.