Analyst Explains Why He Upgraded His Arrowhead Research Rating

Cantor Fitzgerald analyst Elemer Piros upgraded Arrowhead Research (NASDAQ: ARWR) to Buy today and set a price target of $13. The company’s shares opened today at $7.75, close to its 52-week high of $8.09.

Piros wrote:

“Clinical Business. Arrowhead began dosing patients in both indications in March. For HBV, we model a 40% probability of success (POS), assume that Arrowhead will partner the program, and model peak U.S. and EU sales of ~$9.4 billion in 2032, which could generate ~$2.3 billion in 25% royalty payments. For AAT deficiency, we model a 15% POS, assume Arrowhead will maintain full rights to the program and model peak U.S. and EU sales of ~$2.5 billion in 2032. We are encouraged that the company has enrolled a combined 38 patients (24 on drug, 14 on placebo) in these two indications. The company plans to initiate the first 100mg ARO-HBV patient later this week and the first 200mg ARO-AAT patient next week. Arrowhead plans to report data this year, potentially at AASLD (Nov. 9-13).”

According to TipRanks.com, Piros is ranked 0 out of 5 stars with an average return of -4.1% and a 47.6% success rate. Piros covers the Healthcare sector, focusing on stocks such as Spring Bank Pharmaceuticals Inc, Strongbridge Biopharma Plc, and Global Blood Therapeutics.

Arrowhead Research has an analyst consensus of Strong Buy, with a price target consensus of $8.50.

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Based on Arrowhead Research’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $13.2 million. In comparison, last year the company had a GAAP net loss of $6.04 million.

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Arrowhead Pharmaceuticals, Inc. engages as a biopharmaceutical company developing targeted RNAi therapeutics. Its pipeline includes clinical programs in chronic hepatitis B virus and partner based programs in obesity and oncology. The company was founded by R. Bruce Stewart in 1989 and is headquartered in Pasadena, CA.