Piper Sandler initiated coverage on Shattuck Labs (NASDAQ:STTK) with an Overweight recommendation and established a $15.00 price target, implying significant upside relative to the company’s trading level of $4.02. The research note highlights SL-325, Shattuck’s novel DR3-targeting monoclonal antibody in Phase 1 development, as the central catalyst behind the call.
The analyst report frames SL-325 as a differentiated approach to treating inflammatory bowel disease (IBD), observing that targeting the TL1A/DR3 axis has validation within the IBD therapeutic landscape. According to the research, roughly eight TL1A-directed agents are currently being developed, and receptor blockade through SL-325 is expected to deliver durable control of inflammation with a potentially greater inhibitory effect than competing modalities.
Piper Sandler underscored supporting preclinical evidence, citing robust non-human primate results and roughly 10 preclinical models that collectively point toward a favorable safety and tolerability profile. The firm also anticipates lower anti-drug antibody incidence relative to TL1A inhibitors as SL-325 moves into first-in-human testing.
The research house recommended that investors hold the stock ahead of two key clinical milestones: initial Phase 1 single ascending dose/multiple ascending dose data from healthy volunteer studies expected in the second quarter of 2026, followed by planned Phase 2 IBD trial initiations projected around the third quarter of 2026.
On the company’s financial position, InvestingPro data referenced in the coverage note indicate that Shattuck carries more cash than debt on its balance sheet. The same data, however, flag that the firm is expending cash at a rapid pace, and the company’s current ratio was noted at 17.0.
In a separate development cited in the coverage, H.C. Wainwright recently upgraded Shattuck Labs from Neutral to Buy and set a $6.00 price target. That upgrade was derived from a clinical net present value model applied to the SL-325 program, with the model representing full valuation contribution under an assumed 10% probability of success.
Shattuck’s market capitalization at the time of the note was reported as $254.38 million, and the stock has produced a return of 240.68% over the prior 12 months, illustrating notable momentum in the share price.
Investors and market participants will watch the company’s cash consumption, preclinical-to-clinical translation of SL-325, and the timing of the Phase 1 and Phase 2 data readouts as principal factors influencing the outlook for the stock.