Vera Therapeutics (VERA +13.15%) was a standout in the biotech sector on Wednesday. Its stock closed that trading session 13% higher, thanks in no small part to a bullish new note published by an analyst that morning.
A huge potential market
The prognosticator behind the positive note was Cantor Fitzgerald's Pete Stavropoulos, who reiterated his existing overweight (read: buy) recommendation and $100 per share price target on Vera's stock. Even after Wednesday's rise, that level is more than three times the company's current share price.
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According to reports, Stavropoulos believes Vera is still loaded with potential due to the company's progress in developing a treatment for IgA Nephropathy (IgAN; also known as Berger's disease), a serious kidney ailment that can lead to organ failure.
The analyst believes IgAN is a potentially multi-billion-dollar market, so if Vera successfully brings a drug to pharmacy shelves, it could earn significant revenue. In his estimation, the patient population of the U.S. ranges from 85,000 to 151,000 individuals.
NASDAQ: VERA
Key Data Points
Promising development
As ever with biotechs, I must caution that buying them is always risky -- after all, they tend to be boom-or-bust investments dependent on their development cycles. With that in mind, Vera appears to have above-average chances, given that the IgAN program has progressed significantly and the addressable market is substantial.
