Here’s why Surrozen shares are up more than 50% on Tuesday

Almost a month after Surrozen Inc (NASDAQ: SRZN) completed its business combination with a special purpose acquisition company (SPAC), Consonance-HFW Acquisition Corp, Stifel assumed coverage of the biotechnology company with a “buy” rating.

Shares of the company jumped more than 50% on the news this morning and are now exchanging hands at $11.

Stifel has a price target of $19 on SRZN

On Tuesday, Stifel analyst Dae Gon Ha disclosed $19 as his price target on SRZN that represents another 75% increase from here. The California-based company is currently valued at $426 million.

Earlier this year in July, Surrozen said its SZN-1326 showed superior activity in preclinical inflammatory bowel disease. It will now start its first-in-human clinical trial next year.

Regenerative antibodies for tissue repair

Surrozen is pioneering a new class of targeted regenerative antibodies to repair a broad range of tissues and restore organs damaged by serious disease via selectively activating the in-built Wnt pathway.

Upon completion of the SPAC merger last month, CEO Craig Parker who is continuing to lead the joint company, said: