In a report released today, Laura Prendergast from Stifel Nicolaus upgraded Cogent Biosciences to a Buy, with a price target of $40.00.
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Laura Prendergast’s rating is based on the impressive results from Cogent Biosciences’ Phase 3 PEAK study, which evaluated the combination of bezuclastinib and sunitinib in second-line GIST patients. The study demonstrated a progression-free survival (PFS) of 16.5 months for the combination therapy, surpassing both investor expectations and competitive benchmarks, which were around 11-12 months and 15 months, respectively. This significant improvement in PFS positions Cogent Biosciences favorably against competitors and supports the potential for broad adoption in the GIST market.
Additionally, Prendergast has updated the financial model to account for the anticipated global peak sales of approximately $1.1 billion for the combination therapy in second-line GIST. The valuation of Cogent Biosciences is now aligned with recent biotech mergers and acquisitions, reflecting a multiple of around 4 times the enterprise value to five-year forward sales. The company’s plan to submit a New Drug Application for bezuclastinib in the first half of 2026 further strengthens the investment case, as the therapy has shown a favorable safety profile and a higher objective response rate compared to sunitinib monotherapy.
In another report released today, Wedbush also upgraded the stock to a Buy with a $38.00 price target.