Last Updated: 18 Sep 2024
Executive Summary
Akero Therapeutics Inc. (AKRO) is a clinical-stage biopharmaceutical company focused on developing and commercializing novel therapies for cardio-metabolic diseases, including nonalcoholic steatohepatitis (NASH). With a strong pipeline of investigational drugs and a promising long-term outlook, AKRO presents a compelling investment opportunity for investors seeking exposure to the rapidly growing NASH market.
Company Overview
Headquartered in South San Francisco, California, Akero Therapeutics is dedicated to restoring metabolic balance and improving overall health through the development of innovative medications. The company's lead product candidate, efruxifermin, is a novel fibroblast growth factor 21 (FGF21) analog currently in Phase 3 clinical trials for the treatment of NASH.
Fundamental Analysis
Revenue and Earnings: Akero Therapeutics is a pre-revenue company with no significant revenue or earnings to date.
EBITDA: The company reported an EBITDA loss of $234.1 million for the fiscal year ended December 2022.
Book Value: As of December 2022, Akero Therapeutics had a book value of $11.53 per share.
EPS: The company reported a diluted EPS loss of $3.37 for the fiscal year ended December 2022.
Return on Assets and Equity: Akero Therapeutics has negative return on assets (-0.192) and return on equity (-0.289) due to its pre-revenue status.
Technical Analysis
52-Week High/Low: The stock's 52-week high is $51.81, while its 52-week low is $11.25.
Moving Averages: The stock is currently trading above its 50-day moving average ($25.99) and 200-day moving average ($23.29).
Beta: Akero Therapeutics has a beta of -0.258, indicating a low correlation to the overall market.
Short Term Outlook
In the short term, Akero Therapeutics' stock price may fluctuate based on clinical trial results, regulatory approvals, and overall market sentiment. The company's upcoming Phase 3 data readout for efruxifermin in NASH is expected to be a key catalyst for the stock.
Long Term Outlook
The long-term outlook for Akero Therapeutics is promising. The company's focus on developing innovative therapies for NASH, a rapidly growing market, positions it well for future growth. If efruxifermin is successful in clinical trials and receives regulatory approval, Akero Therapeutics could become a major player in the NASH treatment landscape.
Analyst Recommendations
Based on the company's strong pipeline and long-term potential, analysts have issued the following recommendations:
Strong Buy: 2 analysts
Buy: 8 analysts
Hold: 1 analyst
Sell: 0 analysts
Strong Sell: 0 analysts
Analyst Target Price
The average analyst target price for Akero Therapeutics is $45.78, representing a potential upside of approximately 72% from the current stock price of $26.64.
