Stifel downgrades Morphic with ‘ceiling’ ahead of 2025 data

Stifel analyst Alex Thompson downgraded Morphic to Hold from Buy with a price target of $61, down from $69. The analyst continues to view the open-label MORF-057 data as supportive of a potential drug effect, but says the stock is already crediting these data as if they came from a robust Phase 2 study. The firm points out the confirmatory Phase 2 data remain a long way off – the first half of 2025. Until then, there may be a “ceiling on the stock,” the analyst tells investors in a research note. Stifel is unsure that a strategic buyer will step up to acquire Morphic on the single-arm results alone.