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Compugen’s Long-Term Value Potential: Buy Rating Backed by AstraZeneca Partnerships and Financial Stability

Compugen’s Long-Term Value Potential: Buy Rating Backed by AstraZeneca Partnerships and Financial Stability

In a report released on May 20, Daina Graybosch from Leerink Partners maintained a Buy rating on Compugen (CGENResearch Report), with a price target of $10.00.

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Daina Graybosch has given her Buy rating due to a combination of factors that highlight Compugen’s potential for long-term value. Despite the absence of significant internal catalysts until after 2026, the potential for royalties and milestones from AstraZeneca’s development of rilvegostomig, a TIGIT x PD-1 bispecific, underpins a positive outlook for the company. AstraZeneca’s aggressive progression into Phase 3 studies with rilvegostomig, despite setbacks in the TIGIT field, suggests a higher likelihood of Compugen benefiting from future royalties.
Furthermore, AstraZeneca’s strategy of pursuing combinations with antibody-drug conjugates and the potential for milestone achievements in specific trials bolster the positive sentiment. Compugen’s financial position, with $104 million in cash expected to sustain operations until 2027, adds to the confidence in its stability and future prospects. The revised price target of $10 reflects these considerations, alongside the potential impact of earlier Phase 3 trials by Arcus and Gilead, which could significantly influence Compugen’s stock movement.

CGEN’s price has also changed slightly for the past six months – from $1.430 to $1.410, which is a -1.40% drop .

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