B.Riley Starts Foghorn Therapeutics (FHTX) at Buy

B.Riley analyst Kalpit Patel initiates coverage on Foghorn Therapeutics (NASDAQ: FHTX) with a Buy rating and a price target of $10.00.

The analyst comments: "Our investment thesis centers on the company’s strategy to inactivate or degrade SMARCA2 in SMARCA-mutated cancers, representing a potentially significant market opportunity accounting for ~5% of all solid tumors. We view FHTX’s lead asset, FHD-909, a selective SMARCA2 inhibitor currently in a Phase I dose-escalating study, as the primary value driver.

Despite FHD-909’s key differentiated attributes and robust preclinical data, we think the Street is undervaluing this program due to disappointing early efficacy data from Prelude’s SMARCA2 degrader (PRT3789), which missed sustaining high SMARCA2 degradation under the weekly dosing regimen. We believe FHD-909’s consistent in vivo inhibition of SMARCA2 in preclinical studies should not be overlooked, as it suggests the possibility of enhanced clinical potential versus PRT3789. We forecast catalyst-driven upside potential of >100% within the next 12–18 months if FHD-909’s initial clinical updates meet our expectations. Additionally, FHTX’s recent stock weakness is related to the discontinuation of FHD-286, a dual-selective inhibitor targeting both SMARCA2 and SMARCA4, and is unrelated to our investment thesis. We believe this dip has created an attractive entry point to buy FHTX shares."

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

Shares of Foghorn Therapeutics closed at $4.10 yesterday.

You May Also Be Interested In

• JPMorgan Starts Zensho Holdings (7550:JP) at Overweight
• Stifel Starts SpaceX (SPCX) at Buy
• JPMorgan Starts Zensho Holdings (7550:JP) at Overweight