Jul. 1 at 1:37 PM
UBS⬆️
$ORKA to
$130 from
$100, reiterated Buy and said, We continue to like ORKA into the H2 28-week efficacy data readout and initial durability data.
$APGE -
$ABBV JNJ - PTGX ALMS TAK
UBS added—We believe the H2 data will likely show higher efficacy than the 16-week dataset and Skyrizi too at the same 28-week timepoint, supported by numerous psoriasis studies that generally demonstrate improving efficacy over time.
While the stock has had a significant run-up, we still view it as undervalued at a ~
$8-9B market cap* relative to comps including RXDX and APGE (both were acquired for
$11B), particularly given its peak sales potential in a large
$30 - 50B+ I&I market and potentially two differentiated assets: a long-acting IL-23 and a long-acting IL-17 A/F.
We see additional 20-40%+ upside into the H2/26 data update and potentially more upside in 2027, with multiple Phase II datasets expected and the story becoming increasingly de-risked. Reiterate BUY and raise our PT to
$130.
