Overview
Morgan Stanley has maintained an Equalweight rating on Arrowhead Pharmaceuticals (NASDAQ:ARWR) and kept its price target at $81.00, which the firm says implies about 19% upside relative to the stock's current trade at $67.94. The firm pointed to constructive signs around Arrowhead's ARO-DIMER-PA program and reiterated that the late-stage SHASTA-3/4 trials for Redemplo (plozasiran) will likely drive investor attention in 2026.
Clinical programs and timelines
The research note from Morgan Stanley described the ARO-DIMER-PA program as progressing on schedule according to its review. Arrowhead has previously communicated that initial Phase 1/2a topline data for ARO-DIMER-PA are expected to arrive in the second half of 2026. Separately, Morgan Stanley framed the Phase 3 SHASTA-3/4 studies of Redemplo - which target severe hypertriglyceridemia (SHTG) - as the central catalytic event for the company next year, with topline results from those trials anticipated in the third quarter of 2026.
Recent performance and market context
The stock has experienced a significant run-up, delivering a 324% return over the last six months. In addition to the clinical pipeline developments, Arrowhead recently set the market terms for a $625 million convertible notes offering and concurrently launched a public offering of roughly 3.1 million shares at $64.50 apiece. The size of the notes offering was increased from an initial plan of $500 million.
Analyst activity and consensus
Other brokerages have also updated their views. H.C. Wainwright raised its price target to $100 while keeping a Buy rating. Piper Sandler boosted its target to $110, citing the launch of Redemplo for familial chylomicronemia syndrome as an important factor. Cantor Fitzgerald remains Overweight and noted interest in early data for a potential combination involving INHBE and tirzepatide.
Pipeline details
Arrowhead has moved forward with a Phase 1/2a study of ARO-DIMER-PA, an RNA interference therapy designed to target both PCSK9 and APOC3 simultaneously. The therapy's dual-target mechanism is intended to reduce LDL-cholesterol and triglycerides, and the company describes the approach as novel within its program materials.
Upcoming corporate events and valuation signals
Investors should note the company will report its next quarterly earnings on February 5, 2026. Data compiled by InvestingPro show analyst price targets on Arrowhead ranging from $35 to $110. According to InvestingPro's Fair Value assessment cited in the dataset, the current share price appears overvalued. InvestingPro also offers 14 additional investment tips for Arrowhead and a Pro Research Report that provides more in-depth analysis of the company's financial profile.
Conclusion
Morgan Stanley's continuation of an Equalweight rating and an $81 target reflects a cautious stance balanced by progress in mid-stage and early-stage clinical programs, alongside sizable financing activity and active analyst coverage. The firm continues to view the SHASTA-3/4 Phase 3 readouts for Redemplo as the most significant near-term company-specific catalyst for 2026.