LXEO Lexeo Therapeutics Inc.

Raymond James reiterated $LXEO Strong Buy-$24 after the co. announced the acquisition of Mantle Therapeutics & the initiation of add'l research collabs to further advance Lexeo's capabilities to treat Friedrich's ataxia (FA). $BIIB $LRMR PTCT SLDB RCKT TYNA Raymond James said -- On the Mantle deal specifically, we see this as a cost-effective move that both provides technological diversification and underscores the company's commitment to FA. Although we were not aware of Mantle (which has been operating in stealth) and believe most investors were not either, Mantle's main approach of HDAC inhibition has long been studied in FA, and with promising early data, we wonder if Mantle has cracked the code. With Lexeo guiding to filing an IND for one of these assets next year and with runway guidance not changed (still into 2028), we see this deal as having limited short-term impact on the stock but an important long-term play at expanding Lexeo's ability to treat a broader FA population.

Stifel reiterated $LXEO Buy-$17 after recently hosting the Co's mgmt (CEO, CMO and CFO) team on a NDR and at its cardiometabolic day. $BIIB $LRMR PTCT SLDB RCKT TYNA Stifel said -- We're reiterating our Buy rating, and key takeaways include: (1) on the LX2006 pivotal study in FA-CM: management is confident they can meet a 15% effect-size on LVMI based on the ph 1/2 data and their thoughtful patient selection strategy, (2) a meaningful number of patients have already enrolled in the concurrent NH study that are eligible to rollover to the pivotal, making them confident in timelines (2H27 data), (3) the recent Mantle deal bolsters their FA portfolio with programs that complement LX2006 in FA-CM, and (4) notably, management is confident that the efficacy signal for LX2020 PKP2-ACM should deepen over time--with a robust potential effect on NSVTs--and they believe the upcoming 12mos readout (YE26) is sufficient to get a good read on the drug.

$LXEO takes a big step, signing a definitive agreement to acquire Mantle Therapeutics and launching three FA collaborations.