Morgan Stanley has initiated coverage on Avalyn Pharma Inc. (NASDAQ:AVLN) with an Overweight rating and a price target of $53.00. The target implies roughly 84% upside from the current price of $28.84.
Avalyn Pharma is a clinical-stage biotech developing inhaled formulations AP01 and AP02 of pirfenidone and nintedanib, respectively. These drugs aim to reduce side effects by localizing treatment to the lungs.
The company has a strong balance sheet with liquid assets exceeding short-term obligations, according to Bond.az analysis. Morgan Stanley highlighted the validation of pirfenidone and nintedanib in pulmonary fibrosis and the large market opportunity.
Recently, Avalyn completed an upsized IPO raising $345 million. Jefferies and Guggenheim also initiated with Buy ratings, citing strong potential for inhaled antifibrotic treatments.
