JPMorgan analyst Brian Cheng initiates coverage on Arrowhead Pharma (NASDAQ: ARWR) with a Overweight rating and a price target of $88.00.

The analyst comments: "ARWR holds a highly diversified RNAi portfolio targeting a spectrum of diseases and is strategically backed by multiple partnerships with reputable biotech/pharma players. ARWR’s core driver in the cardiovascular space, led by its first commercial product, Redemplo (plozasiran), is taking shape with FCS as the beachhead indication as we look forward to the first full quarter sales numbers next week. We see FCS as a key stepping stone for the franchise and for ARWR to flex its commercial capabilities as it lays the critical groundwork before expanding into the much larger sHTG market pending SHASTA3/4 topline in the coming months (in 3Q). While we recognize that Redemplo is the second major entrant in both markets, we believe Redemplo will compete well based on its overall clinical and once quarterly dosing profile.

Layering over the Redemplo franchise and a well-capitalized position supported by partnerships, ARWR is building the next pillar of its portfolio with early work ongoing in cardiovascular (e.g., DIMER), cardiometabolic/obesity (INHBE, ALK7) and CNS (MAPT). Over the next 6-12 months, multiple data cards from these programs will fall into place with greater granularity. Net-net, we believe ARWR holds multiple levers that investors can lean on for continued upside from today’s valuation."

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Shares of Arrowhead Pharma closed at $73.48 yesterday.