** Brokerage Oppenheimer initiates coverage on Aardvark Therapeutics AARD.O with an "outperform" rating and a $35 PT, which implies a more than twofold upside to stock's last close

** AARD can build a strong business in both Prader-Willi syndrome $(PWS)$ and common obesity, and upcoming data next year and beyond can move the stock higher - brokerage

** PWS is a rare genetic condition that affects how a child grows, leading to weak muscles, short height and learning difficulties

** Oppenheimer sees the upcoming late-stage readout of AARD's experimental drug ARD-101 for treating PWS as a major catalyst and believes it potentially offers better safety compared to Soleno Therapeutics' SLNO.O FDA approved drug Vykat XR

** Oppenheimer says AARD's experimental oral drug for obesity ARD-201 could slot into obesity care on several fronts if human data confirm preclinical results

** ARD-201 could offer an alternative for patients unwilling or unable to use injectable GLP-1 therapies, and act as a maintenance option to help prevent weight regain after patients stop GLP-1 injections due to side-effects or other issues, brokerage says

** As of last close, AARD stock down 9% since its February Nasdaq debut

(Reporting by Padmanabhan Ananthan)

((Padmanabhan.Ananthan@thomsonreuters.com))