William Blair ups view of odds of success for Tempest TPST-1120 approval to 50%

William Blair says shares of Tempest Therapeutics “unfairly sold off” following the initial update from the ongoing randomized Phase 1b/2 clinical study of TPST-1120 so the stock was “coming from an almost unfathomably low valuation going into” the data readout that was shared this morning. The firm, which believes the stock is “still clearly undervalued for the blockbuster opportunity for TPST-1120,” has increased its view of the probability of success for approval of TPST-1120 to 50% from 40% following the update. The firm, which says the increased odds of success increases its fair value estimate to $13 for Tempest shares, keeps an Outperform rating on the stock, which is up $4.71, or nearly 2,000%, to $4.95 in Wednesday afternoon trading.