Spyre Therapeutics (SYRE): Multiple Shots on Goal to Improve Efficacy in IBD – Initiating Coverage with Overweight Rating

We are initiating coverage of Spyre Therapeutics (SYRE) with an Overweight rating and a $110 year-end 2027 price target. Spyre is a biotechnology company with 6 clinical-stage assets in development for inflammatory bowel disease (IBD). The pipeline includes 3 monotherapies targeting α4β7, TL1A, and IL-23; the company has reported Phase 2 data that we view as competitive/broadly in line with peers. Spyre also has 3 combination programs, with Phase 2 readouts expected in 2027. We think Spyre has multiple assets with proven therapeutic targets that are capable of improving efficacy for patients with IBD, and we see the core upside potential in combinations. We think Spyre's combination therapies can differentiate vs competitors on convenience, and we estimate Spyre's annual sales at $6-7bn in 2040, with patents running to at least 2044. Our price target is based on a DCF valuation assuming a 10% discount rate and a 2.5% terminal growth rate.