Jefferies Raises Price Target for aTyr Pharma (ATYR) Ahead of Study Results

aTyr Pharma, Inc. (NASDAQ:ATYR) is one of the Top 10 Stocks Under $10 That Could Triple. On August 22, Jefferies increased its price target for aTyr Pharma, Inc. (NASDAQ:ATYR) from $9 to $17 while keeping a Buy rating.

This decision comes ahead of the Phase 3 trial results for aTyr Pharma, Inc.’s (NASDAQ:ATYR) lead candidate, efzofitimod. The company plans to release topline data from its Phase 3 EFZO-FIT study of efzofitimod in pulmonary sarcoidosis in mid-September 2025.

Jefferies outlined three possible outcomes for the trial results. The firm sees a 37% chance of a strong positive result, showing a drop of more than 3mg in daily oral corticosteroid dose. According to the firm, this could cause aTyr Pharma, Inc.’s (NASDAQ:ATYR) stock price to rise by 3 to 5 times.

The firm sees a 23% chance for base case results, with a 1.87 to 3mg reduction, which could push the stock price 1 to 3 times higher. Jefferies assigned a 40% probability to negative results from the study, which could see the stock price fall by up to 75%.

Jefferies pointed out that there is a big unmet need for treatments for pulmonary sarcoidosis, which does not have any approved therapies yet. The firm noted that early Phase 1 and 2 proof-of-concept data showed encouraging signs, offering hope for positive outcomes in the Phase 3 trial.

aTyr Pharma, Inc. (NASDAQ:ATYR) is a clinical-stage biotechnology company focused on using evolutionary intelligence and tRNA synthetase biology to develop new treatments for diseases involving fibrosis and inflammation.

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Disclosure: None. This article is originally published at Insider Monkey.