Komo gave Insmed, Denali, Immunocore, Crinetics, MiRum, and BioCryst “increased” ratings.
The Zhitong Finance app learned that J.P. Morgan Chase has reinstated the ratings of 15 major biotech stocks in a recent report. Specifically, the bank gave Insmed (INSM.US), Denali (DNLI.US), Immunocore (IMCR.US), Crinetics (CRNX.US), Mirum (MIRM.US), and BioCryst (BCRX.US) “increased” ratings to Cervel Therapeutics (CERE.US), Alkermes (ALKS.US), and Novocure (NVCR.US) Deciphera (DCPH.US), Stoke (STOK.US), and Esperion (ESPR.US) have “neutral” ratings, giving Amarin (AMRN.US), Emergent BioSolutions (EBS.US), and Nektar Therapeutics (NKTR.US) “reduced holdings” ratings.
As for Insmed, Komo believes the stock is expected to rise in the context of recent research updates and before the release of “highly anticipated” data from its ASPen study on Brensocatib treatment of non-cystic fibrosis bronchodilation. The bank's price target for the stock is $36.
Meanwhile, Komo believes that Denali's stock may rise before the 2025 data is released several times, and its ALS drug candidate DNL788 is expected to release phase 2 data in the first half of 2024. The bank saw “multiple ways to create value” from the company's pipeline drugs and was “still in the early stages of potential value.” The bank's price target for the stock is $28.
Following the strong listing of the oncology drug Kimmtrak, Komo is also optimistic about the upside of Immunocore stock. The bank highlighted potential “high-value pipeline opportunities” for PRAME and a “de-risk” technology platform, and set a price target for the stock at $60.
Regarding Crinetics, Komo said that the company may benefit from centralized catalysts over the next 12 months. After the release of “strong” phase III data for its main drug candidate, paltustine, the bank is optimistic about the company, and its target price is $35.
Komo said Mirum's Livmarli is an “attractive opportunity” supporting the stock's valuation, and the reduced clinical risk of its drug candidate, volixibat, has boosted further upward potential. Komo is also optimistic about BioCryst, saying the company's drug Orladeyo is “a key value driver for the stock” and that its broad product line represents upward potential.