BTIG starts Eidos Therapeutics at buy; PT $38

Unknown.png

BTIG launched coverage of Eidos Therapeutics (NASDAQ:EIDX) with a “buy” rating and $38 price target. The stock closed at $23.38 on April 17.

“Eidos is a clinical-stage company we view as significantly undervalued based on the prospects of AG10 – its transthyretin tetramer stabilizer being developed for two forms of amyloidosis that result from aggregation of the transthyretin monomer,” writes analyst Thomas Schrader.

Amyloidosisis a rare disease that occurs when a substance called amyloid builds up in organs. Amyloid is an abnormal protein that is produced in bone marrow and can be deposited in any tissue or organ. Amyloidosiscan lead to life-threatening organ failure.

Mr. Schrader said Eidos has designed AG10 to “enforce near complete multimerization based on genetic data demonstrating the safety of natural transthyretin mutations that result in similar stabilization.”

Pivotal trials are ongoing with a design that looks smart and doable in a field crowded with likely inferior therapeutics, he added. Most of the Eidos stock appreciation for the next 24 months is likely to result from appreciation of the transthyretin market size (potentially approaching 500,000 worldwide) and AG10’s attractive properties, Mr. Shrader said.

Stephen Kilmer