Why Akero Therapeutics (AKRO) Is Among the Top Healthcare Stocks to Buy Now

Akero Therapeutics (NASDAQ: AKRO) has surged to the forefront of healthcare innovation in 2025, driven by its lead drug candidate efruxifermin (EFX) and a clinical pipeline targeting a high-unmet-need disease: metabolic dysfunction-associated steatohepatitis (MASH). With year-to-date (YTD) returns of 80.61% as of early 2025, the company is outperforming major peers like AbbVie (ABBV) and Amgen (AMGN), which reported YTD gains of just 5.83% and 2.83%, respectively. This article examines why AKRO is primed for long-term growth and why investors should consider buying now.

Clinical Breakthroughs: EFX’s Transformative Potential

Akero’s rise hinges on EFX, a first-in-class fibroblast growth factor 21 (FGF21) analog designed to reverse fibrosis in MASH patients. With no FDA-approved therapies for MASH, EFX’s Phase 2b SYMMETRY trial delivered statistically significant results in early 2025:
- 39% of EFX-treated patients (vs. 12% on placebo) achieved ≥1-stage fibrosis improvement in cirrhotic MASH patients (p=0.009).
- 70% of EFX patients saw a ≥25% reduction in liver stiffness, a key marker of disease progression.

The Phase 3 SYNCHRONY program is now enrolling patients across three trials:
1. SYNCHRONY Outcomes: Focused on cirrhotic MASH patients, with endpoints tied to clinical outcomes like liver-related events.
2. SYNCHRONY Histology: Evaluating pre-cirrhotic patients (F2-F3) for fibrosis regression and MASH resolution.
3. SYNCHRONY Real-World: A non-invasive trial with topline data expected in H1 2026, which could accelerate regulatory approval.

Analysts at Bank of America and Clear Street have labeled EFX a “best-in-class” therapy, citing its ability to address multi-system complications of MASH, including insulin resistance and cardiovascular risk.

Financial Strength Amid High Growth

Akero’s financial position has solidified in 2025, thanks to a $402.5 million follow-on offering in January 2025, boosting cash reserves to $743.1 million. This extends its operating runway to 2028, a critical buffer as it navigates late-stage trials.

While the stock dipped to $39.85 in late February after a post-earnings pullback, its 12-month average price target of $75.86 (with upside to $109) suggests a ~50% potential gain from current levels.

Analyst and Institutional Sentiment

• 9 analysts maintain a “buy” rating, with Clear Street and Bank of America targeting $49 and $63, respectively.
• 41 hedge funds held stakes as of Q4 2024, including Proficio Capital Partners, which added shares in late 2024.

Risks to Consider

• Regulatory Delays: FDA approval of EFX depends on Phase 3 results, which could face scrutiny over safety or endpoints.
• Competitive Threats: Amgen (licensor of EFX) and rivals like Gilead Sciences (GILD) may develop competing therapies.
• Market Volatility: Biotech stocks remain sensitive to trial setbacks or broader market swings.

Conclusion: A High-Reward Opportunity

Akero Therapeutics (AKRO) is a high-growth, high-risk play in 2025, but its fundamentals—breakthrough clinical data, robust financials, and institutional support—make it a compelling buy. With $75.86 as the average 12-month price target and SYNCHRONY Real-World data due in mid-2026, investors have clear catalysts to watch.

While risks persist, the 80.61% YTD return and 91.59% total return over 12 months underscore Akero’s trajectory. For investors willing to ride the biotech rollercoaster, AKRO’s potential as a first-in-class MASH therapy positions it as a top pick in an otherwise sluggish healthcare sector.

Final Takeaway: Akero’s EFX could redefine treatment for millions of MASH patients, and with clinical milestones ahead, this stock is worth considering for growth-oriented portfolios.