Jefferies initiated coverage of Braveheart Bio with a Buy rating and a $48 price target, implying roughly 75% upside from the company’s $18 IPO price.
The investment bank assigned the target based on a sum-of-the-parts discounted cash flow analysis, with upside and downside scenarios of $125 and $6 per share, respectively. Braveheart raised $382.5 million in its IPO, one of the largest biotech debuts this year.
BHB-1893, an oral cardiac myosin inhibitor licensed from China-based Hengrui in September 2025, is the company’s lead asset targeting hypertrophic cardiomyopathy (HCM). Jefferies analysts highlighted Phase II data showing a 76% reduction in a key obstruction measure by week 12, with 86% of patients achieving normalized heart flow compared to 49%-57% in Phase III studies of Bristol Myers Squibb’s Camzyos and Cytokinetics’ Myqorzo after 24 weeks.
The analysts assigned $15 per share to the obstructive HCM opportunity, projecting peak sales of $1.5-$2 billion with a 20%-30% probability of success. For non-obstructive HCM, they assigned $27 per share, citing potential peak sales of $2-$3 billion with a 25%-35% success probability. A $4 per share valuation was applied to a heart failure indication, based on over $1 billion in sales and a 10% success probability.
Braveheart plans to begin a global Phase III study in obstructive HCM (LIONHEART-HCM) in the second half of 2026, with interim data due in the second half of 2027. A separate Hengrui-led Phase III study in China is expected to deliver topline data in the first half of 2027, while a Phase III trial in non-obstructive HCM (NOBLEHEART-HCM) is set to start in the first half of 2027, with data due in the second half of 2029. The company is pursuing an accelerated path toward a new drug application filing as early as year-end 2027.
Jefferies noted that BHB-1893 could offer superior attributes compared to existing treatments, while the non-obstructive HCM asset could become a best-in-class therapy justifying $2-$3 billion in sales.
