Oppenheimer starts Q32 Bio with Outperform, sees 150% potential upside

Oppenheimer initiated coverage of Q32 Bio with an Outperform rating and $50 price target, which represents 150% potential upside. The firm has a bullish on Q32’s innovative therapeutics targeting differentiated pathways in “rapidly evolving” autoimmune competitive landscapes. It views Q32 as well positioned in a dynamic space with lead asset bempikibart, a “unique” dual IL-7R/TSLPR antagonist antibody, which Oppenheimer believes demonstrated promising efficacy signals and safety in Phase 1 studies. The analyst sees significant unmet need and market potential for bempikibart in atopic dermatitis and alopecia areata. Topline readouts expected in the second half of 2024 should drive “major value inflection,” the analyst tells investors in a research note.