4D Molecular Therapeutics (NASDAQ:FDMT) stock added as much as 15.8% to $7.54 in Wednesday trading, after Jefferies initiated the clinical-stage biotherapeutics company with a buy rating and a price target of $22, which is more than triple FDMT's last closing price.
"FDMT has a potentially differentiated gene therapy platform able to target a wide range of therapeutic areas with 5 assets in (phase 1/2 trials)... Given the broad applicability across many modalities and tissue types, we view risk/reward balance to be highly attractive," said Jefferies analysts Nalin Tejavibulya, Eun Yang, Suji Jeong and Nancy Weidenbacher.
The analysts also highlighted the company's targeting of therapeutics areas with large markets with a combined market size of greater than $22B in 2021, and the potential for licensing/collaboration opportunities as positives.
FDMT's product candidates 4D-125, 4D-110 and 4D-150 are being developed to treat various eye diseases. Its 4D-310 product is indicated for rare genetic disorder Fabry disease, while its 4D-710 product is indicated for cystic fibrosis.
Up to Tuesday's close, FDMT stock is down nearly 72% from its IPO price of $23.