Buy Rating for Day One Biopharmaceuticals Driven by FDA Approval and Strong Market Potential

Analyst Andres Y. Maldonado of H.C. Wainwright maintained a Buy rating on Day One Biopharmaceuticals (DAWN – Research Report), retaining the price target of $36.00.

Andres Y. Maldonado has given his Buy rating due to a combination of factors that highlight the potential of Day One Biopharmaceuticals. The recent FDA approval of Ojemda (tovorafenib) for BRAF-altered relapsed/refractory pediatric low-grade glioma (pLGG) sets a promising stage for its commercial launch. The company’s revenue projections for 2025 are optimistic, supported by an expanding market and longer treatment durations, with a significant addressable market of 2,000–3,000 patients in the U.S. alone. Additionally, the potential for front-line use, pending results from the FIREFLY-2 trial, could further enhance growth prospects.
The ASCO 2025 data provides strong evidence for the drug’s safety and efficacy, with manageable side effects and a high rate of compliance among patients. The data also shows that the impact on growth is reversible, which is crucial for long-term treatment viability. Furthermore, the initial market uptake, with over 1,600 prescriptions and $57.2M in net sales in 2024, underscores the unmet need and readiness of the market. These factors, combined with a robust pricing strategy and growing prescriber confidence, support the Buy rating and a price target of $36.

In another report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a $29.00 price target.