H.C. Wainwright Reiterates Buy Rating on Shattuck Labs (STTK)

H.C. Wainwright analyst Joseph Pantginis reiterated a Buy rating and $16.00 price target on Shattuck Labs (NASDAQ: STTK).

The analyst commented: "This summer has seen continued bumps in the CD47 road, we think some are more warranted reactions than others. We take the opportunity now to recap and reiterate our stance on why we believe Shattuck's SL-172154 can withstand the choppy waters. We start with EHA 2024 in June, where Gilead (GILD; not rated) presented a final, comprehensive update on the magrolimab, and its late-stage failure in TP53m AML and MDS, ultimately leading to its discontinuation earlier this year. Here, we see the most significant overhang and negative read-through for Shattuck, which, despite presenting positive Phase 1b clinical updates in its respective HR-MDS/TP53 AML CD47 programs at the same conference, took a significant hit to its stock. Despite signs of recovery from this initial reaction over time, we believe the stock remains depressed following continued low confidence among investors on CD47. Further, ALX Oncology (ALXO; Buy; Ramakanth) recently reported topline data from its Phase 2 ASPEN-06 clinical trial evaluating evorpacept (EVO, a CD47 antagonist), in combination with trastuzumab, ramucirumab, and paclitaxel (TRP) versus TRP in 2L or 3L HER2+ gastric and gastroesophageal junction (G/GEJ) cancer patients. Despite providing an overall compelling data package, by virtue of targeting CD47, investor responses signaled an overall wariness. Reiterate Buy rating and $16 PT on STTK."

For an analyst ratings summary and ratings history on Shattuck Labs click here. For more ratings news on Shattuck Labs click here.

Shares of Shattuck Labs closed at $3.52 yesterday.

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