Seres Therapeutics initiated with a Neutral at JPMorgan

JPMorgan analyst Tessa Romero initiated coverage of Seres Therapeutics with a Neutral rating and $7 price target. The company’s lead pipeline asset is SER-109, a microbiome therapeutic candidate currently under priority review with the FDA for the prevention of recurrent C. difficile infection, the analyst tells investors in a research note. The analyst expects a timely approval by the April 26 FDA action date but sees the stock as "roughly fairly valued" at current levels. The firm wants to watch for initial commercial traction ahead of expectations and/or pipeline momentum in order to take a more constructive stance over the mid-term.