HCW starts AVROBIO at buy; PT $47

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H.C. Wainwright initiated coverage of AVROBIO (NASDAQ:AVRO) with a “buy” rating and $47 price target. The stock closed at $39.63 on Sept. 13.

AVROBIO is pioneering the development of lentiviral gene therapies as a potential one-and-done treatment for a range of Lysosomal Storage Disorders (LSD).

With one Phase 2 program targeting Fabry Disease and two near-term INDs that leverage learnings from the Fabry program and optimized vector and processes, targeting Gaucher disease and Cystinosis, “the stage should be set for the more challenging, scientifically gratifying, and commercially rewarding effort targeting the scourge of infantile Pompe disease,” writes analyst Debjit Chattopadhyay.

While the roughly 108%-plus move in AVROBIO stock since its IPO (from $19), compared to a 5% decline in the SPDR S&P Biotech Index, might give investors a pause, “we note multiple company-specific events, including new data supporting the impact of vector optimization on enzyme-replacement therapy naïve Fabry patients during the first half of 2019; clinical stage pipeline augmentation; and macro news flow,” he added.

“Hence, despite the run-up in the stock, we recommend being opportunistic on pullbacks and building a position,” Mr. Chattopadhyay said.

Stephen Kilmer