First Berlin Equity Research Updates Cardiol Therapeutics to "Buy" with a Lowered Target Price

First Berlin Equity Research has updated its recommendation for Cardiol Therapeutics Inc., maintaining a "Buy" rating while reducing the target price from USD 8.50 to USD 7.80. This adjustment emerges despite promising data from the Phase II ARCHER study. CardiolRx, evaluated for acute myocarditis, showed a significant reduction in left-ventricular mass by 9.2g (~7%) versus placebo over 12 weeks.

The study results, presented at the ESC Working Group on Myocardial & Pericardial Disease, underscore healing signals such as reduced left-ventricular mass indicative of resolving inflammation. Critically, other MRI metrics trend positively, suggesting backing for Cardiol's anti-inflammatory approach.

While some secondary endpoints didn't meet the p<0.05 threshold, the data aligns coherently. As inflammation subsides, total myocardial tissue reportedly shrinks, and Cardiol's mechanism gains validation moving forward. Enhanced assumptions were tempered by post-finance dilution, leading to the adjusted target price.