On Monday, Akero Therapeutics Inc . (NASDAQ:AKRO) saw its 12-month price target adjusted by Canaccord Genuity, with the new target set at $56.00, down from the previous $59.00. Despite this change, the firm has maintained a Buy rating on the biotechnology company's stock.
The adjustment in the price target comes after Canaccord Genuity revised its financial model for Akero Therapeutics, taking into account the company's most recent financial results. The decrease in the price target is primarily due to updated projections for the fiscal year 2024 operating expenses.
Canaccord Genuity has increased its estimated Research and Development (R&D) expenses for the fiscal year 2024 from $179 million to $212 million. Additionally, the firm has raised its estimate for Selling, General, and Administrative (SG&A) expenses from $37 million to $40 million. These revisions are based on Akero Therapeutics' ongoing and upcoming involvement in three large-scale Phase III clinical studies throughout the year.
The company's increased financial commitment to these studies is reflected in the higher projected operating costs. The Buy rating suggests that Canaccord Genuity remains optimistic about Akero Therapeutics' potential despite the higher anticipated expenses.
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