JP Morgan starts Audentes Therapeutics at OW; PT $35


JP Morgan initiated coverage on Audentes Therapeutics (NASDAQ:BOLD) with an “overweight” rating and December 2019 price target of $35. The stock closed at $23.91 on Nov. 22.

“Audentes shares have pulled back 40%-plus since early October, which we believe represents an attractive long-term entry point,” writes analyst Anupam Rama.

“We believe the de-risked nature of the known clinical data for gene therapy lead assets, AT132 in X-Linked Myotubular Myopathy and AT342 in Crigler-Najjar Syndrome at current levels, is underappreciated,” he added.

Beyond AT132/AT342, Mr. Rama said Audentes is diversifying its pipeline with AT982, which is in IND-enabling studies for the treatment of Pompe disease, with an IND filing expected in 2019.

He also pointed to the company’s internal manufacturing capabilities, which “we view as underappreciated,” and the overall strength of the management team.

Mr. Rama said pipeline catalysts to monitor in the first quarter of 2019 include program updates for AT132 from the Phase 1/2 ASPIRO study, and for AT342 from the Phase 1/2 VALENS study.

Abby Hardy