Raymond James initiated coverage of Lexeo Therapeutics with a Strong Buy rating and $25 price target. Based on strong results from two Phase 1/2 clinical trials and constructive feedback from FDA, Lexeo's lead asset LX2006 for cardiomyopathy associated with Friedreich's Ataxia is "well-positioned for success" in its pivotal trial, the analyst argues. The firm anticipates the stock will move next year on a finalized pivotal protocol with FDA and initial proof of concept data on a second, unmodeled gene therapy asset, LX2020, notes the analyst, who models LX2006 revenue of $14.1M in FY27 and growing to $805.3M in FY32.
