Jefferies analysts lifted Allakos (NASDAQ:ALLK) to Buy from Hold, raising the firm's price target on the stock to $9 from $6 per share in a note Friday.
The analysts told investors they see a favorable setup for the stock into Ph.IIb CSU data.
The "key ph.IIb readout for liren in CSU is set for 2H23 — we now believe the risk/reward skew positive," the analysts wrote.
ALLK shares gained more than 7% Friday following the note, with the firm's new price target representing a potential 110% upside. However, the stock is down over 47% in 2023.
"We think 1) bar for success is reasonable (i.e., stat sig vs PBO and ~as good as Xolair); 2) POC data so far & ph.IIb setup give ALLK decent POS to hit on the study; and 3) stock should respond (recall, stock was up ~80% in 2019 off EGiD ph.II), even if ph.III/ commercial path is TBD/more challenging," they added.