Spyre Therapeutics: There's More to Play For - Initiate at Buy

We initiate Spyre Therapeutics (SYRE) with a Buy rating and $120 PT. We view SYRE as the best way to play IBD combination therapies within a market we estimate could reach $40-50B in 2035. Its portfolio of combinations across IL-23, a4B7, and TL1A provides multiple shots on goal and, in our view, favorable odds that at least one regimen succeeds clinically and commercially. Instead of concentrating on a single outcome for the future of IBD, SYRE provides exposure to multiple potential winners. The defining catalyst is the company's broad Phase 2 readout in 2027 in UC (timing TBD;