On Tuesday, Oppenheimer adjusted its outlook on Alpine Immune Sciences (NASDAQ:ALPN), raising the biotechnology company's stock price target to $44 from the previous $33, while reiterating an Outperform rating.
The firm's confidence in Alpine's stock is buoyed by the positive performance of the company's shares following initial data from its lead candidate, povetacicept, released in November. Year-to-date, Alpine's shares have significantly outperformed the broader biotech index, posting an 89% increase compared to the 4% gain of the XBI.
The analyst from Oppenheimer highlighted that the company's management remains optimistic, a sentiment that has likely contributed to the stock's recent surge. An important update on Alpine's pivotal RUBY-3 study is expected to be presented at the World Congress of Nephrology (WCN) scheduled for April 13-16, 2024.
Investors are particularly keen to see if the proteinuria reductions observed with povetacicept can be sustained over a longer period and with a larger patient pool.
The upcoming presentation is anticipated to address investor queries regarding the November data, specifically whether the reductions in proteinuria are consistent after an extended follow-up period of 36 weeks.
Moreover, there is interest in whether Alpine can demonstrate stabilization of the estimated glomerular filtration rate (eGFR), a measure of kidney function, which became a focal point after data presented by a peer in January.
The firm's revised stock price target is based on the belief that povetacicept holds best-in-class potential. The analyst expressed optimism that the upcoming data would reinforce povetacicept's efficacy and support the drug's competitive standing in the market.
The new price target reflects this positive outlook and the anticipated impact of the forthcoming clinical data on the company's valuation.
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