Viridian Therapeutics is “a sight for sore eyes,” according to Wells Fargo. Analyst Derek Archila initiated coverage on Viridian with an overweight rating and set a price target at $46, implying almost 83% upside from Friday’s close. Shares are down more than 8% year to date — which the analyst says could be a good entry point for investors. “We think the recent pullback off its highs offers a nice setup into VRDN’s remaining 2023 catalysts. We view VRDN as a lower clinical risk story and believe its current data supports a differentiated profile relative to HZNP’s Tepezza,” Archila wrote in a note on Monday. Tepezza is competitor Horizon Therapeutics ‘ FDA-approved treatment for thyroid eye disease (TED). Viridian’s thyroid eye disease treatment VRDN-001 is currently undergoing clinical testing. Wells Fargo is confident it will gain market share even with Horizon’s Tepezza already established in the market. “VRDN-001 demonstrates better efficacy and safety than Tepezza in active & chronic TED with a shorter IV dosing regimen,” Archila wrote. “We think this should drive market share even with a well-entrenched incumbent.” Results for VRDN-001’s phase one and two trials in chronic thyroid eye disease are expected in the second half of 2023. “While VRDN-001’s data are important, the differences in the enrollment criteria and the length of the treatment (much shorter for VRDN-001) will make comparing the HZNP and VRDN data difficult. Thus, we are looking for signs of activity, good safety and believe any upside move will likely be modest (+5-10%) in our base case,” said Archila. Shares of Viridian were up more than 6% Monday morning. The stock soared 48% in 2022. VRDN 1Y mountain Viridian Therapeutics stock —CNBC’s Michael Bloom contributed to this report.