Why This 9 Meters Biopharma Analyst Sees 800% Upside Ahead

Shares of 9 Meters Biopharma Inc NMTR were ripping higher following a bullish initiation by Brookline Capital Markets.

The 9 Meters Analyst: Analyst Sally Yanchus initiated coverage of 9 Meters shares with a Buy rating and $5 price target, suggesting about 800% upside potential from current levels.

The 9 Meters Takeaways: 9 Meters focuses on two gastrointestinal disorders: celiac disease and short bowel syndromes. The GI conditions represent significant unmet medical needs, Yanchus said in a note. (See the analyst's track record here.)

The company's lead product candidate Larazotide is in Phase 3 studies, and a top-line readout from the trial is expected in the second half of 2021, Yanchus said. 

A second asset, a long-acting GLP-1 agonist for short bowel syndrome, entered Phase 1b/2a trials in June, with the Phase 3 studies likely to commence in the second half of 2021, according to Brookline. 

"In addition to getting the pipeline products approved and on the market, NMTR is also pursuing strategic in-licensing and outlicensing opportunities," Yanchus said. 

Brookline said it estimates that the two gastrointestinal indications will present a $4.2-billion total market opportunity for the company,

NMTR Price Action: At last check, 9 Meters shares were jumping 17.52% to 66 cents. 

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