MS starts coverage on Celldex, bullish view on company's skin disease treatment

Morgan Stanley stars coverage on Celldex Therapeutics CLDX.O with "overweight" rating and PT of $46, citing the co's "pipeline potential in alternative mast cell-mediated diseases" and a "risk/reward that is skewed to the upside"

PT represents a 130.7% upside to stock's last close

Says co's lead skin disease drug, barzolvolimab, has shown a "potentially market-leading efficacy profile" in chronic urticaria, a condition with "significant unmet need" and limited treatment options

Expects barzolvolimab to generate $1.3 bln in risk-adjusted revenue by 2035, modestly below consensus estimates, due to competition from other therapies

Despite competition, barzolvolimab has a "unique ability to deplete mast cells", which could give it an edge in treating most cell-mediated diseases - brokerage

CLDX fell 50.7% in the last 12 months