Morphic price target lowered to $33 from $61 at Stifel

Stifel analyst Alex Thompson lowered the firm’s price target on Morphic to $33 from $61 and keeps a Hold rating on the shares. While the firm views the Phase 2a EMERALD-1 data as “incrementally-derisking of MORF-057,” the recent disclosure of endoscopic improvement in the UEG abstract “certainly detracts from the topline data disclosure,” the analyst tells investors. The firm has updated its model to reflect increased uncertainty and lowered its estimate of the odds of success in Ulcerative Colitis to 50% and Crohn’s Disease to 33%, from 66% for both, the analyst noted.