Analysts Sees Over 50% Upside Opportunity For This Newly Listed Obesity Player Stock, Participating In Big Pharma Race - Structure Therapeutics (NASDAQ:GPCR)

Guggenheim Partners initiated coverage on Structure Therapeutics Inc GPCR with a Buy rating and a price target of $50 based on the multi-billion-dollar potential of oral small GLP1R agonist GSBR-1290.
Suppose Phase 2a results in late 2023 demonstrate acceptable on-mechanism tolerability and at least 5% weight loss at 12 weeks in the obesity arm of the study. In that case, the analyst sees potential for ~2x return in the next 12-18 months, with a 4x return possible with robust Phase 2b data in 2025 and the GIPR/GLP1 oral co-agonist advancing into the clinic.
Ultimately, the analyst sees positive GSBR-1290 results catalyzing a major partnership/collaboration with a large biopharma.
BMO Capital Markets has initiated coverage on Structure Therapeutics with a price target of $40 and an Outperform rating.
The analyst writes that the company's lead asset GSBR-1290 could be a competitive oral option in the growing obesity and type 2 diabetes market, with data coming in 4Q23.
Injectable options dominate the market, but BMO's proprietary survey work suggests a strong desire for effective oral formulations.
The space has large players, including Eli Lilly And Co LLY, Pfizer Inc PFE, and Novo Nordisk A/S NVO.
GSBR-1290 could launch by 2027, well within the likely timeframe for launches of competitive assets.
BMO also notes the upside potential from follow-on assets in pulmonary and metabolic indications.
Price Action: GPCR shares are up 4.58% at $25.10 on the last check Tuesday.

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