H.C. Wainwright initiates coverage on Aardvark Therapeutics stock with Buy rating

Investing.com

Published Jun 30, 2025 07:28AM ET

H.C. Wainwright initiates coverage on Aardvark Therapeutics stock with Buy rating

Investing.com - H.C. Wainwright initiated coverage on Aardvark Therapeutics Inc (NASDAQ:AARD) Monday with a Buy rating and a $40.00 price target. According to InvestingPro data, analyst targets for AARD range from $20 to $50, with the stock currently trading at $13.39.

The research firm highlighted Aardvark's development of a novel, gut-restricted approach to achieving satiety in patients with obesity and hyperphagic conditions. The company's lead candidate, ARD-101, is a proprietary formulation of denatonium acetate that acts on gut receptors to provoke cholecystokinin and glucagon-like peptide 1 signaling. With a market capitalization of $290.51 million and an impressive current ratio of 25.86, InvestingPro data shows the company maintains a strong financial position to support its development programs.

H.C. Wainwright noted that ARD-101 creates a sensation of fullness that may facilitate robust and sustainable weight loss without causing gastrointestinal side effects or negatively affecting body composition by reducing lean muscle mass.

In early Phase 2 trials with both Prader-Willi Syndrome patients and obese mice, ARD-101 demonstrated significant weight loss results. The safety profile in PWS patients appeared favorable, with no adverse events worse than Grade 1.

The firm described ARD-101 as "a novel, safer way to combat obesity and hyperphagia," noting that the compound is odorless and tasteless despite being derived from a chemical compound known for its extremely bitter taste. While the company is not yet profitable, InvestingPro analysis reveals a "GREAT" financial health score, with multiple additional insights available to subscribers.

In other recent news, Aardvark Therapeutics has announced a major reorganization of its leadership team as it progresses with its Phase 3 HERO study of ARD-101 for Prader-Willi Syndrome. The company appointed Timothy Kieffer, Ph.D., as Chief Scientific Officer, Danny Villeneuve as Chief Commercial Officer, Terrie Kellmeyer, Ph.D., as Senior Vice President, Regulatory Affairs, and Christian Zapf, J.D., as General Counsel. Additionally, Aardvark disclosed inducement grants to new employees, which include options to purchase shares as part of their employment package. RBC Capital Markets has maintained an Outperform rating on Aardvark Therapeutics, with a price target of $21.00, citing the potential impact of the upcoming Phase III data for ARD-101. Cantor Fitzgerald also reaffirmed its positive outlook with an Overweight rating and a $50.00 price target, suggesting that ARD-101 could be used alongside recently approved competing treatments. Both firms highlight the potential for significant valuation changes contingent on the trial outcomes expected in early 2026. The analysts from Cantor Fitzgerald also noted a discrepancy in market capitalization between Aardvark and its competitors, suggesting a higher probability of success for ARD-101 than currently reflected in the market. These developments underscore the strategic shifts and market expectations surrounding Aardvark Therapeutics.

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