Wells upgrades Acelyrin to Overweight with shares trading below cash

Wells Fargo upgraded Acelyrin to Overweight from Equal Weight with an unchanged price target of $13. With the shares trading below cash, the risk/reward for the stock is favorable ahead of key updates “that should firmly reprioritize” ionigutamab as the company’s lead asset, the analyst tells investors in a research note. The firm thinks ionigutamab is currently underappreciated by investors. Wells believes the drug will be active in Phase 3 but admits the Phase data “doesn’t give us a ton of confidence.” There will be a “reversion trade” over the next six months given Acelyrin’s new CEO’s willingness to explore different strategic options for its pipeline, the firm adds.