89bio Inc (ETNB) Stock Forecast & Price Target

89bio Inc demonstrates a positive outlook due to the impressive results from the Phase 2 ENTRIGUE study, in which pegozafermin significantly reduced triglyceride levels in patients with severe hypertriglyceridemia, achieving reductions of -56%, -57%, and -63% across various dosing groups, all statistically significant. The company's ENTRUST trial is viewed as a high-probability success, with plans to evaluate fibrosis regression at 24 months that could potentially lead to accelerated approval in the U.S. and conditional approval in Europe, further solidifying the therapeutic potential of pegozafermin in treating liver diseases.

89bio Inc reported a substantial FY2024 net loss of $367.1 million, equating to $3.51 per basic and diluted share, which indicates significant ongoing financial struggles. The company faces several critical risks that could adversely impact its stock performance, including potential clinical trial failures for its lead product candidate, pegozafermin, and the possibility of not securing necessary regulatory approvals, both pivotal for market entry. Additionally, challenges related to market size, competition, intellectual property, and funding adequacy further contribute to the negative outlook on the company's financial health and future profitability.