Truist ups Scholar Rock targets, calls potential takeout target

Truist raised the firm’s price target on Scholar Rock (SRRK) to $45 from $36 and keeps a Buy rating on the shares after Biohaven’s (BHVN) Phase 3 study spinal muscular atrophy failed to meet the primary endpoint. Truist now sees a stronger case for Scholar Rock in SMA and are increased its peak sales to $1.5B from $1.2B. The SMA market opportunity could be larger than anticipated given the removal of this competitive overhang, the analyst tells investors in a research note. With positive SMA data and apitegromab in a Phase 2 trial for obesity, the firm now sees Scholar Rock as a potential takeout target.