Stifel Starts Lexeo Therapeutics (LXEO) at Buy, 'Catalyst-Rich 2024'

Stifel analyst Paul Matteis initiates coverage on Lexeo Therapeutics (NASDAQ: LXEO) with a Buy rating and a price target of $20.00.

The analyst comments "We are initiating coverage of Lexeo (LXEO) with a Buy rating and a $20 target price. For an early-stage gene therapy investment, we believe Lexeo checks a number of key boxes: (1) promising preclinical/initial clinical data, (2) commercially attractive indications that are truly unmet needs--Friedreich's Ataxia cardiomyopathy [FA-CM], APOE-4 Alzheimer's, PKP2-CM, (3) experienced management team, and (4) multiple near-to-mid-term stock catalysts. The foundation of our investment thesis is our bullish view on LXEO's FA-CM asset, LX2006, where we're optimistic that additional data in 2024 can show compelling evidence of frataxin/FXN restoration with corroboration from cardiovascular biomarkers. More broadly, we think Lexeo stands to benefit from an increasingly flexible regulatory path in CV gene therapy (i.e., RCKT Danon) which also may represent a tailwind for their PKP2-CM program. Meanwhile, Lexeo is pursuing a creative Alzheimer's gene therapy (APOE2 for APOE4s) that--while risky--we think garners little credit in the stock today."

For an analyst ratings summary and ratings history on Lexeo Therapeutics click here. For more ratings news on Lexeo Therapeutics click here.

Shares of Lexeo Therapeutics closed at $11.00 yesterday.

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