This European biotech company could rally nearly 45%, says Morgan Stanley

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Morgan Stanley is bullish on pelabresib, currently awaiting results from its Phase 3 MANIFEST-2 trial.

Recent data for cancer treatment manufacturer MorphoSys AG suggests the German biotech's shares could see a significant rally, according to Morgan Stanley. The bank upgraded MorphoSys American depositary shares to overweight from underweight on Friday, and raised its price target to $9.20 from $3.70, implying 45% upside from Thursday's close. "Despite increasing competition, our updated analysis suggests peak global sales of $1.

"In addition, while some clinical risk remains, the data so far suggests that MANIFEST-2 has a good chance of success, which should drive significant upside in the shares," Quigley said. To be sure, the analyst noted that "binary outcome and profit taking" have led to weak MorphoSys shares in recent weeks, but the risk-reward profile is positively skewed at current prices, he added.

 

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