Oppenheimer Begins Tracking Aardvark Therapeutics (AARD) with Bullish Outlook on Strong Upside Potential

Financial research platform Fintel highlights a significant development in biotech analyst coverage. As of late December 2025, investment bank Oppenheimer launched research coverage on Aardvark Therapeutics with an Outperform rating, signaling confidence in the company’s near-term performance. The research initiative comes amid growing institutional interest in the healthcare innovation sector.

Valuation Forecasts Point to Substantial Upside

Market analysts tracking Aardvark Therapeutics have established an average one-year valuation target of $33.09 per share, representing potential gains of 127.45% from the stock’s recent closing price of $14.55. Price forecasts among covering analysts range considerably, from a conservative $18.18 to an ambitious $52.50, reflecting divergent views on execution risks and market opportunity. The wider the range, the more uncertainty exists around regulatory pathway and commercial readiness.

On the profitability front, projections suggest the company faces near-term earnings pressure, with estimated annual non-GAAP earnings per share at -2.94, typical for clinical-stage or early commercial-phase therapeutics still scaling revenue.

Institutional Capital Shows Strong Positioning

Aardvark Therapeutics has attracted meaningful institutional attention, with 110 funds and institutions currently maintaining positions in the company. The institutional investor base expanded significantly in recent months, adding 25 new positions—a 29.41% increase quarter-over-quarter. This growing participation reflects building confidence among sophisticated investors.

Portfolio weighting tells an important story. The average allocation across all institutional holders stands at 0.09% of assets under management, up 49.45% from the prior quarter. More tellingly, total institutional share count grew 5.56% to 9.63 million shares over the same three-month period, demonstrating that money managers are actively accumulating positions rather than merely holding existing stakes.

Major Stakeholder Moves Signal Strategic Interest

Decheng Capital maintains the largest institutional position with 3.92 million shares, representing 17.99% of outstanding equity. The firm has held this stake steady with no changes during the latest reporting cycle, suggesting confidence in current valuation levels.

Citadel Advisors holds 1.36 million shares (6.25% ownership), increasing its stake by 5.60% from prior filings. However, the firm modestly reduced its portfolio allocation weight by 8.74%, indicating selective profit-taking despite the larger position.

Laurion Capital Management owns 1.05 million shares (4.82% ownership), up 5.78% sequentially. Like Citadel, this manager slightly trimmed its portfolio weight allocation by 0.62%, suggesting a more measured approach despite growing absolute holdings.

Adage Capital Partners dramatically increased its commitment, raising holdings from 175K to 350K shares (+50.00%) and boosting portfolio allocation weight by a striking 84.79%. This aggressive move signals aggressive conviction among top-tier hedge funds.

Vanguard Total Stock Market Index Fund shows the most dramatic percentage shift, surging from 34K to 337K shares—a 89.87% jump—with portfolio weighting exploding 1,486.09% higher. The massive rebalancing in this passive vehicle reflects either index inclusion changes or significant capital flow into broad market exposure tied to Aardvark.

The accumulation of institutional firepower, combined with bullish analyst coverage and 127% upside potential, suggests Aardvark Therapeutics has entered a phase of renewed investor scrutiny and capital deployment.