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JP Morgan has started coverage of newly public Lexeo Therapeutics (NASDAQ:LXEO) with an overweight rating, stating it saw potential upside with continued de-risking of its drug candidates.
The investment bank said it believes the company’s lead drug candidate LX2006 provides an innovative approach for the treatment of Friedreich’s ataxia, potentially being able to restore cardiac function and reverse disease abnormalities.
It added that upcoming clinical catalysts “could help the stock work over the next six to twelve months, to the extent Lexeo’s candidates/approach see further de-risking.”
JP Morgan set its price target for the stock at $20.