Oppenheimer reiterates Lexeo Therapeutics stock rating on trial data

Investing.com reports that Oppenheimer has reaffirmed an Outperform rating and set a $20.00 price target for Lexeo Therapeutics (NASDAQ:LXEO), based on new clinical trial data for the company's LX2006 candidate. The target suggests potential for significant gains, as the current stock price of $3.10 has risen 16% over the past week but is still down 46% over the past six months.

The firm's updated data bolsters confidence in LX2006's market potential for treating Friedreich ataxia. The neurologic efficacy signal demonstrated a 4.26-point advantage over controls in mFARS, with greater than a four-point improvement from baseline in participants followed for three years. While the small, open-label datasets need further confirmation, the consistency and durability of the benefits bolster the investment case.

Lexeo's LX2020 program for PKP2-ACM is also progressing on schedule and could increase investor interest due to its potential $1 billion peak sales value. The stock appears undervalued according to InvestingPro data, with a strong buy consensus among analysts and more cash than debt on the balance sheet. Lexeo Therapeutics recently completed its acquisition of Mantle Therapeutics for up to $21.3 million, strengthening its Friedreich ataxia treatment platform with four new therapeutic programs, including LX3010.

Following the acquisition, Lexeo plans to collaborate with Cornell Med, Aperture, and Vivet to further develop these therapies. Baird and Raymond James have also maintained positive ratings for Lexeo stock, with Baird setting a $28.00 price target and Raymond James a $24.00 price target. Meanwhile, Stifel reaffirmed a Buy rating with a $17.00 price target, emphasizing confidence in the company's ongoing clinical studies.

These developments highlight Lexeo's efforts to expand its therapeutic offerings for Friedreich's ataxia.