Evercore ISI Starts 89bio Inc. (ETNB) at Outperform, PT $49, 'compelling arbitrage opportunity for investors'

Evercore ISI analyst Liisa Bayko initiates coverage on 89bio Inc. (NASDAQ: ETNB) with a Outperform rating and a price target of $49.00.

The analyst comments "ETNB trades at a 60% discount to peer AKRO which has a similar drug candidate in a similar stage of development. This presents a compelling arbitrage opportunity for investors with a long-term view as P3 programs are just getting off the ground and we expect a relatively long execution period during which all eyes will be on the evolution of the NASH market as MDGL paves the way with resmetirom, and others in the field meet developmental milestones. Additionally, SHTG is a second indication for pegozafermin and is already in P3. Strategy is still being worked out but refractory SHTG represents a second, likely smaller opportunity for pegozafermin. ETNB has >$480M in cash which we project to provide runway into 2025 – we think additional funds will be needed to complete both P3 programs in NASH & SHTG."

For an analyst ratings summary and ratings history on 89bio Inc. click here. For more ratings news on 89bio Inc. click here.

Shares of 89bio Inc. closed at $21.19 yesterday.

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