Stifel initiates Crinetics Pharma with 'buy' on FDA approval prospects

Stifel initiates coverage on Crinetics Pharmaceuticals CRNX.O with "buy" rating; sets PT at $60

Price target represents a 67% upside to the stock's last close wile median PT is $75.64 - LSEG data

Brokerage sees a potential FDA approval of CRNX's lead drug, paltusotine, to treat a growth hormone-related condition called acromegaly as well as carcinoid syndrome, a set of symptoms caused by tumors that often develop in the digestive tract or lungs

Estimates paltusotine to achieve $2 billion in combined peak sales

CRNX's other drug, atumelnant, is being developed to treat a rare genetic disorder and other conditions

Study data for atumelnant looks "highly promising" but overshadowed by transient liver damage signals, which remain hard to vet, though favorable regulatory actions seem positive - Stifel

Fifteen of 16 brokerages rate the stock "buy" or higher, 1 "hold"

Up to Monday's close, stock had fallen ~19% in the past 12 months