Tectonic Therapeutic initiated with an Overweight at Piper Sandler

Piper Sandler initiated coverage of Tectonic Therapeutic with an Overweight rating and $76 price target. The analyst believes the company’s lead asset TX45 has high potential in the Group 2 pulmonary hypertension associated with heart failure with preserved ejection fraction market, with a Phase 2 proof of concept study to kick off in the second half of 2024 and Phase 1b hemodynamic study topline expected in 2025. A positive topline in the latter “would meaningfully de-risk late-stage development,” the analyst tells investors in a research note.