Stifel, Morgan Stanley bullish on newly public Contineum
Stifel initiated coverage of Contineum Therapeutics (NASDAQ:CTNM) with a buy rating, citing the company’s drug candidate PIPE-791 for the treatment of idiopathic pulmonary fibrosis, or IPF.
Stifel said Contineum has “multiple credible shots-on-goal,” with PIPE-791 being “the most compelling.”
The investment bank views the drug’s LPA1R mechanism as “almost fully derisked.” It added that positive Phase 3 data from a study by Bristol Myers (BMY) for its LPA1R drug “could represent a significant inflection point for CTNM and a catalyst for strategic interest/activity in the space.”
Stifel also noted that the company’s drug candidates for major depressive disorder, which is partnered with Johnson & Johnson (JNJ), and multiple sclerosis offer “compelling optionality.”
Stifel set its price target for the stock at $29.
Morgan Stanley also initiated coverage of the stock, rating it overweight with a price target of $25.
Contineum made its market debut in April through a $110M IPO.