Fulcrum shares should be up 30%-50% on hold lift, says Oppenheimer

Oppenheimer analyst Matthew Biegler reiterates an Outperform rating on Fulcrum Therapeutics with a $16 price target after the FDA released FTX-6058’s clinical hold. The analyst sees the shares rallying 30%-50% on the news, saying many had thought the hold would take longer than six months to resolve, or had written the program off completely. The stock in premarket trading is up 39% to $5.45. As expected, the trial’s eligibility has been revised to focus on higher risk patients, the analyst tells investors in a research note. While these restrictions will narrow the eligible population, FTX-6058 could still achieve blockbuster status as the first oral therapy since hydroxyurea to demonstrate real vaso-occlusive crises benefit, contends Oppenheimer.