UPDATE: Deutsche Bank Initiates Coverage on Arrowhead Research on Good Potential

In a report published Wednesday, Deutsche Bank analyst Alethia Young initiated coverage on Arrowhead Research ARWR with a Buy rating and $45.00 price target. In the report, Deutsche Bank noted, “Arrowhead is an early stage platform company that we believe could have the market cap potential of $4-5B as it becomes de-risked. The company's lead target is ARC-520 for Hepatitis B (HBV). Our HBV deep dive suggests ARC-520 could grow the market from $2B to $5B and see $5.2B peak sales WW. Ph2a data in 4Q14, and ph2b data in 2015 provide significant upside & the oppy to de-risk the platform over the next 12-18 mos. We also think HBV & HCV markets have strong parallels.” Arrowhead Research closed on Tuesday at $21.14.