Analyst Upgrade Enhances Confidence in Shattuck's Next-Gen Inflammatory Bowel Disease Treatment
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
Upgrade and Price Forecast: HC Wainwright upgraded Shattuck Labs Inc. from Neutral to Buy, setting a price target of $6, driven by the potential of its lead product candidate, SL-325, for treating inflammatory bowel disease (IBD).
Clinical Trial Progress: The company has initiated dosing in the Phase 1 clinical trial for SL-325, with completion of the single-ascending dose (SAD) and multiple-ascending dose (MAD) portions expected by the second quarter of 2026.
Market Competition and Differentiation: While competitors like Merck and Roche are advancing with TL1A-targeting therapies, Shattuck aims to differentiate itself by targeting the DR3 receptor, which may offer more durable inflammatory control.
Stock Performance: Following the upgrade, Shattuck Labs' stock (STTK) rose by 13.3%, reaching $2.38.
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Analyst Views on STTK
Wall Street analysts forecast STTK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STTK is 5.00 USD with a low forecast of 4.00 USD and a high forecast of 6.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 4.170
Low
4.00
Averages
5.00
High
6.00
Current: 4.170
Low
4.00
Averages
5.00
High
6.00
About STTK
Shattuck Labs, Inc. is a biotechnology company. The Company is engaged in the development of treatments for inflammatory and immune-mediated diseases. Its lead product candidate, SL-325, is a monoclonal antibody that is designed to bind to death receptor 3 (DR3) and inhibit its interaction with its ligand, TL1A. TL1A is a costimulatory ligand in the tumor necrosis factor superfamily, which activates immune responses through binding a single receptor, DR3. The Company is conducting a Phase I clinical trial in healthy volunteers. In addition, the Company is also developing SL-425, a half-life extended version of SL-325. It is also developing multiple preclinical DR3-based bispecific antibodies, which are designed to inhibit both the DR3/TL1A axis and another biologically relevant target for the treatment of patients with inflammatory bowel disease.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Shattuck Labs Shares Rise After Piper Sandler Initiates Overweight Rating
- Rating Upgrade: Piper Sandler initiates coverage on Shattuck Labs (STTK) with an Overweight rating and a $15 price target, likely driving an increase in the company's stock price.
- Clinical Trial Catalysts: Analyst Yasmeen Rahimi highlights that Shattuck's lead candidate SL-325 is set to report initial Phase 1 trial results in Q2 and initiate mid-stage trials in Q3, presenting significant market opportunities for the company.
- Mechanism Validation: The mechanism of action for SL-325 has been validated by nearly eight drugs targeting TL1A, a protein that causes inflammation through interaction with the DR3 receptor, which Shattuck's candidate aims to block, providing durable inflammation protection.
- Differentiated Treatment: The analyst notes that SL-325 offers a differentiated approach to treating inflammatory bowel disease patients, expected to have a greater inhibitory effect, thereby enhancing its competitive position in the market.
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