Analyst Ratings February 4, 2026

Clear Street Sticks with Buy on Palvella Ahead of Phase 3 SELVA Readout

Analysts lift targets and maintain bullish view as Palvella outlines timing for topline and full Phase 3 SELVA data

By Derek Hwang PVLA
Clear Street Sticks with Buy on Palvella Ahead of Phase 3 SELVA Readout
PVLA

Clear Street reiterated a Buy rating and a $200.00 price target on Palvella Therapeutics (NASDAQ:PVLA) after the company provided an update on its Phase 3 SELVA trial in microcystic lymphatic malformation (mLM). The price target implies substantial upside from the current trading level, fitting with a broadly optimistic analyst consensus and recent positive study-related developments and publications.

Key Points

  • Clear Street reiterated a Buy rating and $200.00 price target on Palvella Therapeutics following an update on the Phase 3 SELVA trial in microcystic lymphatic malformation (mLM).
  • Palvella said a mean mLM-IGA improvement greater than +1.0 would correspond to approximately 60-70% of patients achieving meaningful clinical improvement; management remains fully blinded and focused on study execution.
  • Analyst support strengthened as TD Cowen raised its price target to $190.00 and Mizuho initiated coverage with an Outperform rating and $205.00 target; Palvella also published a systematic review supporting QTORIN pitavastatin and plans Phase 2 development by H2 2026.

Clear Street has maintained a Buy rating on Palvella Therapeutics (NASDAQ:PVLA) and kept its $200.00 price target following an update from the company about its Phase 3 SELVA trial in microcystic lymphatic malformation - commonly abbreviated mLM. That target represents a notable premium to the stock's recent trading price of $82.01 and tracks with a broader analyst consensus that holds an average price target of $177.50.

Market data noted by the company shows that PVLA has produced a 475% return over the past year, even after some late weakness in the share price.

In its update, Palvella clarified how the primary clinical scale for the SELVA study maps to meaningful patient benefit. Specifically, the company said a mean improvement of greater than +1.0 on the mLM-IGA scale would equate to roughly 60-70% of patients achieving clinically meaningful improvement. Management characterized that outcome as highly successful in the context of an orphan indication where no approved therapies currently exist.

Palvella also reiterated that its team remains fully blinded and concentrated on study execution. Management confirmed that topline Phase 3 SELVA results will not be presented at the upcoming American Academy of Dermatology - AAD - Annual Meeting scheduled for March 27-31. Instead, the firm indicated the trial readout could be released in that general timeframe as a standalone event separate from its fourth quarter 2025 earnings call.

Full, detailed Phase 3 SELVA data are expected to be presented at the International Society for the Study of Vascular Anomalies - ISSVA - World Congress, which takes place May 19-22. Ahead of that presentation, Palvella plans to provide program updates at the AAD meeting, including a comparison of its QTORIN rapamycin topical formulation versus compounded rapamycin preparations.

Beyond the SELVA update, Palvella announced the publication of a systematic review in Clinical and Experimental Dermatology that the company says supports the clinical potential of QTORIN™ pitavastatin for porokeratosis. That review covered 24 studies and a combined total of 95 patients, and the company indicated the analysis strengthens its plan to move QTORIN pitavastatin into Phase 2 development for disseminated superficial actinic porokeratosis by the second half of 2026.

Analyst activity has accompanied these program developments. TD Cowen raised its Palvella price target from $133.00 to $190.00 and kept a Buy rating after a successful Breakthrough Therapy Designation advice meeting with the U.S. Food and Drug Administration for the QTORIN rapamycin program in cVM. TD Cowen noted confidence in the Phase 3 trial results for QTORIN rapamycin, which are expected in the first quarter of 2026.

Meanwhile, Mizuho initiated coverage of Palvella with an Outperform rating and a $205.00 price target, calling attention to the company’s topical formulation platform aimed at orphan skin diseases. Together, the analyst moves and the clinical updates reflect ongoing efforts by Palvella to advance its development programs and sustain analyst support.


Context and next milestones

Investors should expect a staged flow of information: program updates at the AAD meeting, a potential standalone announcement of topline SELVA results around the AAD dates, and a comprehensive data presentation at the ISSVA World Congress in May. Additional clinical advancement is planned for QTORIN pitavastatin toward a Phase 2 start in the second half of 2026.

Market signals

  • Clear Street - Buy, $200.00 price target.
  • Consensus average analyst price target - $177.50.
  • TD Cowen - raised target to $190.00 and retained Buy after FDA meeting advice on QTORIN rapamycin for cVM.
  • Mizuho - initiated with Outperform and $205.00 target.

These data points are consistent with an overall positive view among analysts, supported by the company’s clinical progress and recent publication activity.

Risks

  • Timing uncertainty - Palvella confirmed topline Phase 3 SELVA data will not be presented at the AAD meeting, and timing of the standalone topline release is described only as potentially around that timeframe.
  • Clinical risk - The interpretation that a mean >+1.0 on the mLM-IGA corresponds to 60-70% of patients achieving meaningful improvement is a company-provided mapping and the ultimate trial results may differ.
  • Regulatory and development risk - Advancement plans, including moving QTORIN pitavastatin into Phase 2 by the second half of 2026 and expected Phase 3 QTORIN rapamycin results in Q1 2026, remain contingent on trial execution and regulatory interactions.

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