MorphoSys initiated with an Overweight at Wells Fargo

Wells Fargo analyst Derek Archila initiated coverage of MorphoSys with an Overweight rating and $17 price target. The analyst calls the company a “deep value in SMID biotech.” With an enterprise value of $400M, a “de-risked” Phase 3 readout for pelabresib in Q4, and $1B in peak sales potential, “this is a compelling story,” the analyst tells investors in a research note. The firm thinks pelabresib, a BET inhibitor, is de-risked and expects the MANIFEST-2 trial readout in Q4 to be positive.