Investors should consider jumping on board with Vera Therapeutics following its recent dip in the market, as recommended by Goldman Sachs. Analyst Paul Choi has just started covering the biotech stock with a bullish buy rating. He’s set a price target of $58, indicating the potential for the stock to climb a substantial 66.5% from its closing price on Monday. Choi believes that the upcoming publication of positive topline results from Vera’s study, while anticipated, will further substantiate the unique clinical benefits of atacicept, a promising contender for treating autoimmune kidney diseases. He highlighted that, based on the company’s projections, sales of atacicept are expected to gain momentum in the latter half of this decade due to its superiority over competing treatments.
In a note to clients on Monday, Choi explained, “After the recent downturn, VERA shares offer an appealing entry point, primarily because atacicept seems well-positioned for commercialization starting next year.” His remarks about the “downturn” refer to the over 17% drop in share prices since the year began, contrasting with a staggering 175% increase last year.
The attraction to Vera isn’t just about the current market opportunity for its shares. According to Choi, the stock’s allure lies in its “competitive moat,” “best-in-class profile,” and “significant lead” in its field. There’s also a chance for strategic interest in Vera, fueled by recent similar transactions in the sector and prospects of extending its treatment capabilities to additional patients with a specific chronic kidney disease. Moreover, the company could potentially widen its focus to encompass related diseases, according to Choi.
With this recommendation, Choi aligns with the majority of analysts surveyed by LSEG, who also give Vera’s stock a buy rating.
