It’s time for investors to consider snatching up shares of this little-known clinical-stage pharmaceutical stock, according to Piper Sandler. Analyst Yasmeen Rahimi initiated coverage of Crinetics Pharmaceuticals with an overweight rating and a $56 price target. That target implies the stock could skyrocket more than 200% from Friday’s close. Rahimi views the company’s treatment pipeline as “packed with catalysts,” and called its paltusotine treatment for a disorder causing enhanced hormone growth — acromegaly — a “blockbuster market opportunity.” Acromegaly affects about 3-to-14 of every 100,000 people, according to the National Institute of Health . “Our strong conviction is based on the upcoming pivotal trials of PATHFNDR-1 (in 3Q23) & -2 (in 1Q24) in acromegaly that we believe carries a high [probability of success] (85%), low biological, regulatory, and clinical risk,” Rahimi said in a Monday note. “Given that there are ~28K patients in the U.S., we believe that acromegaly represents a large market opportunity with potential > $2B in peak sales.” Shares of Crinetics have gained more than 13% this month and are trading near the flatline for the year. According Rahimi, the market is undervaluing shares of Crinetics and some potential upcoming stock-moving events. That includes positive results from its PATHFNDR-1 and PATHFNDR-2 studies, which could come as soon as August and late-January, respectively. CRNX 1M mountain Stock performance over the last month “We believe the stock could move up significantly on a positive outcome given that paltusotine could be the first non-peptide oral treatment (leading to high adherence and adoption) for acromegaly,” she wrote. Outside of acromegaly, some potential upcoming catalysts include data on a study of paltusotine as a treatment for carcinoid syndrome, a group of symptoms connected to carcinoid tumors, later this year Data related to a possible treatment for Cushing’s disease — which occurs as a result of high cortisol levels — and a genetic disorder known as congenital adrenal hyperplasia could provide additional tailwinds. — CNBC’s Michael Bloom contributed reporting