By Sam Boughedda
EyePoint Pharmaceuticals (NASDAQ:EYPT) was initiated with an Outperform rating and $33 per share price target at Baird on Friday, pushing its share price significantly higher.
The stock hit a high of over $10 per share following the upgrade. At the time of writing, it is currently at $7.59, more than 33% above Thursday's close.
Baird analysts told investors in a note that the rating and price target are based on a "long-acting insert with proven safety and early signs of efficacy in wet AMD, with multiple catalysts ahead."
"The reduction of treatment burden in wet AMD ($9B+ global branded market) is a meaningful unmet need, and we believe early data for EyePoint's lead asset EYP-1901 (long-acting Durasert insert of VEGF TKI vorolanib) give us confidence that EYP-1901 could carve out meaningful market share," the analysts explained.
"The Phase 2 Eylea-controlled DAVIO 2 study is expected to readout in 4Q23, and we also see potential for ongoing program in diabetic retinopathy," they concluded.