Why Shattuck Labs Stock Flew Nearly 5% Higher on Friday

Shattuck Labs (STTK) climbed nearly 5% Friday after JPMorgan Chase analyst Brian Cheng initiated coverage with an overweight rating and a $10 price target, implying 35% upside from current levels.

Cheng's bullish stance centers on SL-325, the company's lead drug candidate targeting inflammatory bowel disease. The first-in-class antagonist antibody has demonstrated a cleaner safety profile and stronger target engagement compared to competing therapies in clinical trials. The compound is slated to enter Phase 2 trials in Q3, a key milestone that could validate the early-stage data.

The JPMorgan endorsement marks a significant vote of confidence for the biotech, which has been advancing its pipeline through mid-stage development. The $10 target suggests Cheng sees meaningful upside potential as SL-325 progresses through the regulatory pathway.