Audentes Therapeutics Initiated Overweight At Wedbush

Wedbush has started coverage of Audentes Therapeutics Inc BOLD with an Outperform rating and $20 price target, citing the stock as "a compelling opportunity."

Audentes' AAV-based gene therapy programs are targeted at Pompe disease, X-linked multiple myopath and Crigler-Najjar, a rare congenital disease characterized by severely high levels of bilirubin and risk of neurological damage and death. The clinical readouts are expected in 2017 backed by robust pre-clinical data.

Audentes expects to submit INDs for AT982 for the treatment of Pompe disease and AT342 for the treatment of Crigler-Najjar Syndrome Type 1 (CN Type 1) to enter the clinic in the third quarter and fourth quarter of 2016, respectively.

Related Link: Cowen & Company Initiates Coverage On Audentes Therapeutics At Outperform

The company is also developing AT132 for the treatment of X-Linked Myotubular Myopathy (XLMTM) and AT307 for the treatment of CASQ2 subtype of Catecholaminergic Polymorphic Ventricular Tachycardia (CASQ2-CPVT). The IND submission for these programs is expected in the first quarter 2017 and full-year 2017, respectively.

"We believe BOLD's ability to ensure a reliable commercial supply of its products will minimize the risk of program delays and protect proprietary IP," analyst David Nierengarten wrote in a note.

Data for the first three programs to enter the clinic, AT982, AT342 and AT132 is expected by year-end 2017, which should be predictive of long-term benefit.

Shares of Audentes closed Friday's regular trading at $14.70. The $20 price target represents a potential upside of 36 percent over Friday's close.

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