Morphic price target lowered to $52 from $106 at BMO Capital

BMO Capital lowered the firm’s price target on Morphic to $52 from $106 and keeps an Outperform rating on the shares. The analyst says the firm is reassessing the path forward for MORF-057 after last week’s release of a UEG abstract detailing data for the EMERALD-1 Phase 2a data for MORF-057 in moderate to severe UC patients. While the science on the drug remains “intact”, BMO also appreciates the broader uncertainty around the program and investor concern that the next validating data is not expected until 2025, the analyst tells investors in a research note.