Stifel is singing the praises of Lexeo Therapeutics (NASDAQ:LXEO) by kicking off its coverage with a strong buy rating. The firm is particularly enthusiastic about Lexeo’s leading drug candidate, LX2006, for treating Friedreich’s ataxia and believes the potential of an Alzheimer’s therapy is being undervalued in the company’s stock.
The analysts at Stifel emphasized that Lexeo ticks all the right boxes – boasting promising early data, targeting commercially attractive indications with genuine unmet needs, flaunting an experienced management team, and having numerous upcoming catalysts that are set to propel the stock’s performance.
Looking at the bigger picture, Stifel foresees Lexeo reaping the benefits of a more adaptable regulatory landscape in cardiovascular gene therapy. Additionally, the analysts believe that despite the risks associated with it, Lexeo’s innovative Alzheimer’s therapy isn’t commanding the recognition it deserves in the current stock valuation.
Setting an optimistic tone, Stifel has pinned a price target of $20 for Lexeo’s stock, indicating strong confidence in the company’s future trajectory.