Morgan Stanley stays Overweight Akero Therapeutics after 89bio data in NASH

After 89bio (ETNB) provided results from the Phase 2b ENLIVEN study of pegozafermin in F2/F3 non-alcoholic steatohepatitis, or NASH, Morgan Stanley analyst Michael Ulz noted that pegozafermin is a potential competitor to Akero Therapeutics’ (AKRO) efruxifermin, or EFX, which is expected to enter Phase 3 in 2023. Despite the challenges of cross trial comparison, the firm continues to believe EFX has "a competitive efficacy profile" and believes data for pegozafermin further validate FGF21 as a target for NASH that drives fibrosis improvement. In addition, another successful study in NASH supports a continued positive shift in sentiment, according to the firm, which reiterates an Overweight rating and $65 price target on Akero shares.